Document ID: chunk:federal_register_of_legislation:F2023L01535:body:0:p13
Version: federal_register_of_legislation:F2023L01535
Segment Type: other
Provision Reference: 
Character Range: 33394–36246

not capable of exercising objective and impartial judgement in relation to the conduct of the work that is undertaken for the institution in relation to the Prudential Acts, prudential standards or reporting standards; or
       (b)          a reasonable person, with full knowledge of all relevant facts and circumstances, would conclude that the auditor is not capable of exercising objective and impartial judgement in relation to undertaking the work for the institution for the purposes of the Prudential Acts, prudential standards or reporting standards.[16]
74.         A person who was a member of an audit firm or a director of an audit company and who served in a professional capacity in the audit of an APRA-regulated institution in relation to the Prudential Acts, prudential standards or reporting standards, cannot be appointed to the role of director or senior manager of that APRA-regulated institution until at least two years have passed since they served in that professional capacity.
75.         A person who was an employee of an audit company, other than a director of that company, and who acted as the lead auditor[17] or review auditor[18] in the audit of an APRA-regulated institution in relation to the Prudential Acts, prudential standards or reporting standards, cannot be appointed to the role of director or senior manager of that APRA-regulated institution until at least two years have passed since they acted as the lead auditor or review auditor.
76.         A person cannot be appointed as a director or senior manager of an APRA-regulated institution if:
       (a)          the person was, or is, a director of the audit company or a member of the audit firm that was, or is, responsible for the audit of the APRA-regulated institution in relation to the Prudential Acts, prudential standards or reporting standards; and
       (b)          there is already another person employed as a director or senior manager of the APRA-regulated institution who was a director of the audit company or a member of the audit firm, at a time when the audit company or audit firm undertook an audit of the APRA-regulated institution at any time during the previous two years.
77.         An individual who plays a significant role[19] in the audit of an APRA-regulated institution in relation to the Prudential Acts, prudential standards or reporting standards, for five successive years, or for more than five years out of seven successive years, cannot continue to play a significant role in the audit until at least a further two years have passed, except with an exemption from APRA. APRA may grant an exemption from this requirement if the individual provides specialist services that are otherwise not readily available or there are no other registered company auditors available to provide satisfactory services for the