Document ID: chunk:federal_register_of_legislation:C2025C00134:section:130aa:p1
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 130AA (pt 1/3)
Character Range: 687187–689885

130AA  Obligations of lead auditors—solvency

Contravention by RSE audit company
 (1) An RSE audit company conducting an audit of a registrable superannuation entity contravenes this subsection if:
 (a) the lead auditor for the audit forms the opinion that the financial position of the entity may be, or may be about to become, unsatisfactory; and
 (b) the lead auditor formed the opinion in the course of, or in connection with, the performance by the RSE audit company of any of the following functions under this Act, the regulations, the prudential standards or the Financial Sector (Collection of Data) Act 2001 in relation to the entity:
 (i) audit functions;
 (ii) any other functions if, in the course of, or in connection with, the performance of the functions by the RSE audit company, the lead auditor obtained sufficient information to enable the lead auditor to assess the financial position of the entity; and
 (c) the lead auditor does not, immediately after the lead auditor forms the opinion, tell the Regulator, and a trustee of the entity, about the matter in writing.

Contravention by member of RSE audit firm
 (2) A member of an RSE audit firm conducting an audit of a registrable superannuation entity contravenes this subsection if:
 (a) the lead auditor for the audit forms the opinion that the financial position of the entity may be, or may be about to become, unsatisfactory; and
 (b) the lead auditor formed the opinion in the course of, or in connection with, the performance by the RSE audit firm of any of the following functions under this Act, the regulations, the prudential standards or the Financial Sector (Collection of Data) Act 2001 in relation to the entity:
 (i) audit functions;
 (ii) any other functions if, in the course of, or in connection with, performance of the functions by the RSE audit firm, the lead auditor obtained sufficient information to enable the lead auditor to assess the financial position of the entity; and
 (c) the lead auditor does not, immediately after the lead auditor forms the opinion, tell the Regulator, and a trustee of the entity, about the matter in writing.
 (3) A member of an RSE audit firm does not commit an offence at a particular time because of a contravention of subsection (2) if the member:
 (a) does not know at that time of the circumstances that constitute the contravention of subsection (2); or
 (b) does know of those circumstances at that time but takes all reasonable steps to correct the contravention as soon as possible after the member becomes aware of those circumstances.
Note: A defendant bears an evidential burden in relation to the matters in this subsection, see subsection 13.3(3) of the