Document ID: chunk:federal_register_of_legislation:C2004A01334:clause:1_324cd
Version: federal_register_of_legislation:C2004A01334
Segment Type: clause
Provision Reference: sch 1 cl 324CD
Character Range: 109411–110723

324CD  Conflict of interest situation

 (1) For the purposes of sections 324CA, 324CB and 324CC, a conflict of interest situation exists in relation to an audited body at a particular time if, because of circumstances that exist at that time:
 (a) the auditor, or a professional member of the audit team, is not capable of exercising objective and impartial judgment in relation to the conduct of the audit of the audited body; or
 (b) a reasonable person, with full knowledge of all relevant facts and circumstances, would conclude that the auditor, or a professional member of the audit team, is not capable of exercising objective and impartial judgment in relation to the conduct of the audit of the audited body.

 (2) Without limiting subsection (1), have regard to circumstances arising from any relationship that exists, has existed, or is likely to exist, between:
 (a) the individual auditor; or
 (b) the audit firm or any current or former member of the firm; or
 (c) the audit company, any current or former director of the audit company or any person currently or formerly involved in the management of the audit company;
and any of the persons and bodies set out in the following table:

Relevant relationships
Item                    If the audited body is…  have regard to any relationship with…