Document ID: chunk:federal_register_of_legislation:F2018L00165:clause:2_12
Version: federal_register_of_legislation:F2018L00165
Segment Type: clause
Provision Reference: sch 2 cl 12
Character Range: 49152–51897

12  Independent auditor
         (1)           A Supplier that falls within (a) or (b) of the definition of Supplier must appoint an independent auditor to monitor the Supplier's compliance with this Recall Notice, including, for example, implementation of recalls, replacement rates, efforts to source replacement inflators, replacement capacity management, and Consumer complaints management.  The auditor must make recommendations for improvement (if any) and assess implementation of those recommendations or other improvements in subsequent reports.
         (2)           Before appointing an independent auditor, a Supplier must submit the name and qualifications of their proposed auditor to the ACCC, so that the ACCC can assess their independence and qualifications. Submission of the name of the nominated auditor must be made by no later than the commencement of quarter 3 of 2018. The Supplier must identify any association between the proposed auditor and the Supplier which may affect or be perceived to affect the auditor's independence.  The ACCC will notify the Supplier if it accepts the independence and qualifications of the auditor.  If the ACCC is not satisfied as to the independence and/or qualifications of the auditor, then it will so notify the Supplier, and the Supplier must nominate a different independent auditor in accordance with the same process as above within 5 business days.  This process of nomination and assessment will continue until the ACCC is satisfied of the independence and qualifications of the nominated auditor.
         (3)           The ACCC will consider joint nominations of an independent auditor by multiple Suppliers.
         (4)           Subject to subsections 12(5) and (6), and until further notice from the ACCC, the independent auditor must provide a report to the Supplier within one month of the end of each calendar quarter or at an earlier date if requested by the Supplier or the ACCC.
         (5)           A Supplier may apply to the ACCC for an exemption from this section based on the Supplier's Supply Profile, the replacement rates achieved as at the time of commencement of this Recall Notice, or other factors the Supplier considers relevant.
         (6)           A Supplier's obligations under this section will end once the Supplier's obligations under this Recall Notice have been met as set out in subsections 5(3), (4) and (5), or if a Supplier makes an application to the ACCC to end the obligation and the ACCC determines that the Supplier's recall action has reached a point and achieved a replacement rate such that the independent auditor's monitoring and reporting is no longer of assistance in improving the Supplier's compliance and recall outcome.