Document ID: chunk:federal_register_of_legislation:C2004A01334:clause:1_324cb:p1
Version: federal_register_of_legislation:C2004A01334
Segment Type: clause
Provision Reference: sch 1 cl 324CB (pt 1/3)
Character Range: 96925–99558

324CB  General requirement for auditor independence—member of audit firm

Contravention by member of audit firm

 (1) A person (the defendant) contravenes this subsection if:
 (a) an audit firm 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) 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 reasonable steps to ensure that the conflict of interest situation ceases to exist.

Note: For conflict of interest situation, see section 324CD.

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 conflict of interest situation exists in relation to the audited body 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 conflict of interest situation exists; 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 conflict of interest situation remains in existence; and
 (ii) ASIC has not been informed in writing by the defendant, by another member of the audit firm or by someone else on behalf of the audit firm 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 or a registered scheme and the notice under this subsection is not followed up by a notice under subsection 327B(2B) (public company) or 331AAA(2B) (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 a conflict of interest situation exists 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)