Document ID: chunk:federal_register_of_legislation:C2025C00185:section:324cf:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 324CF (pt 1/2)
Character Range: 1232370–1235009

324CF  Auditor independence—specific requirements for audit firm

Contraventions by members of audit firm
 (1) A person (the defendant) contravenes this subsection if:
 (a) an audit firm 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 defendant is a member of the audit firm at that time; and
 (d) the defendant is or becomes aware of the circumstances referred to in paragraphs (a) and (b); and
 (e) the defendant does not, as soon as possible after the defendant becomes aware of those circumstances, take all reasonable steps to ensure that the audit firm does not continue to engage in audit activity in those circumstances.

Member of audit firm to notify ASIC
 (1A) A person (the defendant) contravenes this subsection if:
 (a) an audit firm 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 audit firm is the auditor of the audited body; and
 (c) the defendant is a member of the audit firm at a time when the circumstances referred to in paragraph (b) exist; and
 (d) on a particular day (the start day), the defendant becomes aware of the circumstances referred to in paragraphs (a) and (b); and
 (e) at the end of the period of 7 days from the start day:
 (i) the circumstances referred to in paragraph (b) remain in existence; and
 (ii) ASIC has not been informed in writing of those circumstances by the defendant, by another member of the audit firm or by someone else on behalf of the audit firm.
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(2B) (public company); or
(b) subsection 328E(4) (public company with crowd‑sourced funding); or
(c) subsection 331AAA(2B) (registered scheme); or
(d) subsection 331AH(4) (registrable superannuation entity).
 (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