Document ID: chunk:federal_register_of_legislation:C2025C00134:section:130ca:p1
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 130CA (pt 1/3)
Character Range: 706012–708740

130CA  Lead auditors—failure to implement actuarial recommendations

Contravention by RSE audit company
 (1) An RSE audit company conducting an audit of a registrable superannuation entity contravenes this subsection if:
 (a) the entity is a defined benefit fund; and
 (b) the lead auditor for the audit forms the opinion that there has been a failure to implement an actuarial recommendation relating to contributions to the fund by the employer‑sponsor that a trustee of the fund, or an employer‑sponsor of the fund, was required to implement and that was contained in:
 (i) a report of an actuary obtained under the regulations or the prudential standards; or
 (ii) a report of an actuary obtained in accordance with a requirement under the regulations or the prudential standards; or
 (iii) a document in a class prescribed by regulations for the purposes of this subparagraph; and
 (c) the lead auditor formed the opinion in the course of, or in connection with, the performance by the RSE audit company of audit functions under this Act, the regulations, the prudential standards or the Financial Sector (Collection of Data) Act 2001 in relation to the entity; and
 (d) the lead auditor does not, immediately after the lead auditor forms the opinion:
 (i) tell a trustee of the entity about the matter in writing; and
 (ii) if the contravention about which the lead auditor has formed the opinion is of such a nature that it may affect the interests of members or beneficiaries of the entity—tell the Regulator 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 entity is a defined benefit fund; and
 (b) the lead auditor for the audit forms the opinion that there has been a failure to implement an actuarial recommendation relating to contributions to the fund by the employer‑sponsor that a trustee of the fund, or an employer‑sponsor of the fund, was required to implement and that was contained in:
 (i) a report of an actuary obtained under the regulations or the prudential standards; or
 (ii) a report of an actuary obtained in accordance with a requirement under the regulations or the prudential standards; or
 (iii) a document in a class prescribed by regulations for the purposes of this subparagraph; and
 (c) the lead auditor formed the opinion in the course of, or in connection with, the performance by the RSE audit firm of audit functions under this Act, the regulations, the prudential standards or the Financial Sector (Collection of Data) Act 2001 in relation to the entity; and
 (d) the lead auditor does not, immediately after the lead auditor