Document ID: chunk:federal_register_of_legislation:C2004A01334:clause:1_324ca:p1
Version: federal_register_of_legislation:C2004A01334
Segment Type: clause
Provision Reference: sch 1 cl 324CA (pt 1/3)
Character Range: 90663–93394

324CA  General requirement for auditor independence—auditors

Contravention by individual auditor or audit company

 (1) An individual auditor or audit company contravenes this subsection if:
 (a) the individual auditor or audit company 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) at that time:
 (i) in the case of an individual auditor—the individual auditor is aware that the conflict of interest situation exists; or
 (ii) in the case of an audit company—the audit company is aware that the conflict of interest situation exists; and
 (d) the individual auditor or audit company does not, as soon as possible after the individual auditor or the audit company becomes aware that the conflict of interest situation exists, take all reasonable steps to ensure that the conflict of interest situation ceases to exist.

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

Individual auditor or audit company to notify ASIC

 (1A) An individual auditor or audit company contravenes this subsection if:
 (a) the individual auditor or audit company is the auditor of an audited body; and
 (b) a conflict of interest situation exists in relation to the audited body while the individual auditor or audit company is the auditor of the audited body; and
 (c) on a particular day (the start day):
 (i) in the case of an individual auditor—the individual auditor becomes aware that the conflict of interest situation exists; or
 (ii) in the case of an audit company—the audit company becomes aware that the conflict of interest situation exists; and
 (d) at the end of the period of 7 days from the start day:
 (i) the conflict of interest situation remains in existence; and
 (ii) the individual auditor or audit company has not informed ASIC in writing 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(2A) or (2C) (public company) or 331AAA(2A) or (2C) (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, if the person is a natural person:
 (a) the information; and
 (b) the giving of the information;