Document ID: chunk:federal_register_of_legislation:F2017L00454:reg:5
Version: federal_register_of_legislation:F2017L00454
Segment Type: reg
Provision Reference: reg 5
Character Range: 2636–5260

5  When a person is transitionally recognised
 (1) A person is transitionally recognised, in relation to a reporting unit, if:
 (a) immediately before the commencement time, the person:
 (i) held, or was a member of a firm that held, the position of auditor of the reporting unit; and
 (ii) was an approved auditor; and
 (b) the person, or firm, has held the position of auditor of the reporting unit continuously since the commencement time; and
 (c) the person has not ceased to be recognised under subsection (2); and
 (d) the person's recognition is not suspended under subsection (3); and
 (e) the person's registration as an auditor under the Corporations Act 2001 is not suspended.
 (2) The person ceases to be recognised:
 (a) at the end of the 3 months beginning at the commencement time; or
 (b) if any of the following events occurs or circumstances exists during those 3 months—when the event occurs or the circumstance starts to exist:
 (i) the person is registered as an auditor under section 255B of the Act;
 (ii) the person is no longer a member of at least one of CPA Australia, The Institute of Chartered Accountants in Australia and the Institute of Public Accountants;
 (iii) if the person was an approved auditor on the basis that he or she held a current Public Practice Certificate—the person ceases to hold the certificate;
 (iv) the person's recognition is cancelled under subsection (3).
A person who has ceased to be recognised under this subsection cannot become transitionally recognised again.
 (3) The Commissioner may cancel or suspend recognition of a person in any circumstances in which, had the person been a registered auditor, the Commissioner would have been permitted under the Act or the Fair Work (Registered Organisations) Regulations 2009 to cancel or suspend the person's registration as an auditor.
 (4) In working out for the purposes of subsection (3) whether the circumstances in section 255H of the Act exist in relation to a person, the reference in that section of the Act to a person who was registered as an auditor on the basis that the person was a registered company auditor at the time of registration is taken to be a reference to a person who was an approved auditor and a registered company auditor immediately before the commencement time.
 (5) Section 255J of the Act applies in relation to the Commissioner's decision under subsection (3) of this section.
Note: This means that the Commissioner must give notice of the decision, and the decision does not take effect until the day the notice is given.

Part 2—Transitional provisions for approved auditors