Document ID: chunk:federal_register_of_legislation:C2025C00185:section:324cg:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 324CG (pt 1/4)
Character Range: 1244968–1247693

324CG  Auditor independence—specific requirements for audit company

Specific independence requirements for audit company
 (1) An audit company contravenes this subsection if:
 (a) the audit company 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 (9) of this section; and
 (c) the audit company is or becomes aware of the circumstances referred to in paragraph (b); and
 (d) the audit company does not, as soon as possible after the audit company becomes aware of those circumstances, take all reasonable steps to ensure that the audit company does not continue to engage in audit activity in those circumstances.

Audit company to notify ASIC
 (1A) An audit company contravenes this subsection if:
 (a) the audit company 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 (9) of this section while the audit company is the auditor of the audited body; and
 (c) on a particular day (the start day), the audit company 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 audit company has not informed ASIC in writing of those circumstances.
Note: 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(2C) (public company); or
(b) subsection 328E(5) (public company with crowd‑sourced funding); or
(c) subsection 331AAA(2C) (registered scheme); or
(d) subsection 331AH(3) (registrable superannuation entity).
 (1B) If the audit company 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 audit company
 (2) An audit company contravenes this subsection if:
 (a) the audit company 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 (9) of this section.
 (3) For the purposes of an offence based on subsection (2), strict liability applies to the physical elements of the offence specified in paragraph (2)(b).
Note 1: For strict liability, see section 6.1 of the