Document ID: chunk:federal_register_of_legislation:C2004A01334:clause:1_324ce:p1
Version: federal_register_of_legislation:C2004A01334
Segment Type: clause
Provision Reference: sch 1 cl 324CE (pt 1/2)
Character Range: 111800–114612

324CE  Auditor independence—specific requirements for individual auditor

Specific independence requirements for individual auditor

 (1) An individual auditor contravenes this subsection if:
 (a) the individual auditor engages in audit activity at a particular time; and
 (b) a relevant item of the table in subsection 324CH(1) applies at that time to a person or entity covered by subsection (5) of this section; and
 (c) the individual auditor is or becomes aware of the circumstances referred to in paragraph (b); and
 (d) the individual auditor does not, as soon as possible after the individual auditor becomes aware of those circumstances, take all reasonable steps to ensure that the individual auditor does not continue to engage in audit activity in those circumstances.

Individual auditor to notify ASIC

 (1A) An individual auditor contravenes this subsection if:
 (a) the individual auditor is the auditor of an audited body; and
 (b) a relevant item of the table in subsection 324CH(1) applies to a person or entity covered by subsection (5) of this section while the individual auditor is the auditor of the audited body; and
 (c) on a particular day (the start day), the individual auditor becomes aware of the circumstances referred to in paragraph (b); and
 (d) at the end of the period of 7 days from the start day:
 (i) those circumstances remain in existence; and
 (ii) the individual auditor has not informed ASIC in writing of those circumstances.

Note: If the audited body is a public company or a registered scheme and the notice under this subsection is not followed up by a notice under subsection 327B(2A) (public company) or 331AAA(2A) (registered scheme) within the period of 21 days from the day the notice under this subsection is given, the audit appointment will be terminated at the end of that period.

 (1B) A person is not excused from informing ASIC under subsection (1A) that the circumstances referred to in paragraph (1A)(b) exist on the ground that the information might tend to incriminate the person or expose the person to a penalty.

 (1C) However:
 (a) the information; and
 (b) the giving of the information;
are not admissible in evidence against the person in a criminal proceeding, or any other proceeding for the recovery of a penalty, other than proceedings for an offence based on the information given being false or misleading.

 (1D) If the individual auditor gives ASIC a notice under paragraph (1A)(d), ASIC must, as soon as practicable after the notice has been received, give a copy of the notice to the audited body.

Strict liability contravention of specific independence requirements by individual auditor

 (2) An individual auditor contravenes this subsection if:
 (a) the individual auditor engages in audit activity at a particular time;