Document ID: chunk:federal_register_of_legislation:C2025C00185:section:324ca:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 324CA (pt 1/3)
Character Range: 1198608–1201367

324CA  General requirement for auditor independence—auditors

Contravention by individual auditor or audit company
 (1) An individual auditor or audit company contravenes this subsection if:
 (a) the individual auditor or audit company engages in audit activity in relation to an audited body at a particular time; and
 (b) a conflict of interest situation exists in relation to the audited body at that time; and
 (c) at that time:
 (i) in the case of an individual auditor—the individual auditor is aware that the conflict of interest situation exists; or
 (ii) in the case of an audit company—the audit company is aware that the conflict of interest situation exists; and
 (d) the individual auditor or audit company does not, as soon as possible after the individual auditor or the audit company becomes aware that the conflict of interest situation exists, take all reasonable steps to ensure that the conflict of interest situation ceases to exist.
Note: For conflict of interest situation, see section 324CD.

Individual auditor or audit company to notify ASIC
 (1A) An individual auditor or audit company contravenes this subsection if:
 (a) the individual auditor or audit company is the auditor of an audited body; and
 (b) a conflict of interest situation exists in relation to the audited body while the individual auditor or audit company is the auditor of the audited body; and
 (c) on a particular day (the start day):
 (i) in the case of an individual auditor—the individual auditor becomes aware that the conflict of interest situation exists; or
 (ii) in the case of an audit company—the audit company becomes aware that the conflict of interest situation exists; and
 (d) at the end of the period of 7 days from the start day:
 (i) the conflict of interest situation remains in existence; and
 (ii) the individual auditor or audit company has not informed ASIC in writing that the conflict of interest situation exists.
Note 1: For conflict of interest situation, see section 324CD.
Note 2: If the audited body is a public company, a registered scheme or a registrable superannuation entity, the audit appointment will be terminated at the end of the period of 21 days (or a longer period that has been approved by ASIC) from the day a notice under this subsection is given if the notice is not followed up by a notice under:
(a) subsection 327B(2A) or (2C) (public company); or
(b) subsection 328E(3) or (5) (public company with crowd‑sourced funding); or
(c) subsection 331AAA(2A) or (2C) (registered scheme); or
(d) subsection 331AH(3) or (5) (registrable superannuation entity).
 (1B) A person is not excused from informing ASIC under subsection (1A) that a conflict of interest situation exists on the ground that the information might