Document ID: chunk:federal_register_of_legislation:C2025C00185:section:311:p3
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 311 (pt 3/4)
Character Range: 1141218–1143939

an audit of a registrable superannuation entity); and
 (b) the person is aware of circumstances that:
 (i) the person has reasonable grounds to suspect amount to a contravention of this Act; or
 (ii) amount to an attempt, in relation to the audit, by any person to unduly influence, coerce, manipulate or mislead a person involved in the conduct of the audit (see subsection (6)); or
 (iii) amount to an attempt, by any person, to otherwise interfere with the proper conduct of the audit; and
 (c) if subparagraph (b)(i) applies:
 (i) the contravention is a significant one; or
 (ii) the contravention is not a significant one and the person believes that the contravention has not been or will not be adequately dealt with by commenting on it in the auditor's report or bringing it to the attention of the directors; and
 (d) the person does not notify ASIC in writing of those circumstances as soon as practicable, and in any case within 28 days, after the person becomes aware of those circumstances.
 (3A) A person contravenes this subsection if:
 (a) the person is the lead auditor for an audit of a registrable superannuation entity; and
 (b) the person suspects on reasonable grounds that there are circumstances that amount to a contravention of this Act; and
 (c) the person does not notify ASIC in writing of those circumstances as soon as practicable, and in any case within 28 days, after the person forms that suspicion.
 (3B) A person commits an offence if the person contravenes subsection (3A).
 (3C) A person commits an offence of strict liability if the person contravenes subsection (3A).

Significant contraventions
 (4) In determining for the purposes of this section whether a contravention of this Act is a significant one, have regard to:
 (a) the level of penalty provided for in relation to the contravention; and
 (b) the effect that the contravention has, or may have, on:
 (i) the overall financial position of the company, registered scheme or disclosing entity; or
 (ii) the adequacy of the information available about the overall financial position of the company, registered scheme or disclosing entity; and
 (c) any other relevant matter.
Note: This subsection applies to sub‑funds of retail CCIVs in a modified form: see section 1232G.
 (5) Without limiting paragraph (4)(a), a penalty provided for in relation to a contravention of a provision of Part 2M.2 or 2M.3, or section 324DAA, 324DAB or 324DAC, includes a penalty imposed on a director, because of the operation of section 344, for failing to take reasonable steps to comply with, or to secure compliance with, that provision.

Person involved in an audit
 (6) In this section:
person involved in the conduct of an audit means: