Document ID: chunk:federal_register_of_legislation:C2025C00185:section:19:p3
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 19 (pt 3/4)
Character Range: 1271453–1273984

(ii) the related body corporate; or
 (iii) the controlled entity; and
 (b) is made or given on the terms and conditions that would normally apply to a loan made or given by the audited body, the related body corporate or the controlled entity.

Loans by immediate family members in ordinary business dealing with client
 (6) For the purposes of item 16 of the table in subsection (1), disregard a debt owed to a person by a body corporate or entity if:
 (a) the item applies to the person because the person is an immediate family member of:
 (i) a professional member of the audit team conducting the audit of the audited body; or
 (ii) a non‑audit services provider; and
 (b) the debt is incurred in the ordinary course of business of the body corporate or entity.
 (6A) For the purposes of item 16 in the table in subsection (1), disregard an amount owed under a loan to a person or firm by the audited body, a related body corporate or an entity that the audited body controls if:
 (a) the body, body corporate or entity is an Australian ADI; and
 (b) the amount is deposited in a basic deposit product provided by the body, body corporate or entity; and
 (c) the amount was deposited, in the ordinary course of business of the audited body, body corporate or entity, on the terms and conditions that would normally apply to a basic deposit product provided by the body, body corporate or entity.

Ordinary commercial guarantee exception
 (8) For the purposes of item 19 of the table in subsection (1), disregard any guarantee that:
 (a) is made or given in the ordinary course of the business of:
 (i) the audited body; or
 (ii) the related body corporate; or
 (iii) the controlled entity; and
 (b) is made or given on the terms and conditions that would normally apply to a guarantee made or given by the audited body, the related body corporate or the controlled entity.

Future debts and liabilities
 (8A) In this section:
 (a) a reference to a debt or amount that is owed by one entity to another entity includes a reference to a debt or amount that will (or may) be owed by the first entity to the other entity under an existing agreement between the entities; and
 (b) a reference to a liability under a guarantee of a loan includes a reference to a liability that will arise under the guarantee if the loan is not repaid.

Relevant financial year
 (9) In this section:
relevant financial year, in relation to audit activities undertaken in relation to an audit or review of a financial report for a financial year or an