Document ID: chunk:federal_register_of_legislation:C2025C00182:section:225:p2
Version: federal_register_of_legislation:C2025C00182
Segment Type: section
Provision Reference: s 225 (pt 2/3)
Character Range: 575492–578398

(2A) The FRC functions include:
 (a) appointing the members of the AUASB (other than the Chair); and
 (b) giving the AUASB advice or feedback on the AUASB's:
 (i) priorities; and
 (ii) business plans; and
 (iii) procedures; and
 (ba) giving the Office of the AUASB advice or feedback on the Office's:
 (i) budgets; and
 (ii) staffing arrangements (including level, structure and composition of staffing); and
 (c) determining the AUASB's broad strategic direction.

Specific auditor quality functions
 (2B) The FRC functions include giving strategic policy advice and reports, to the Minister and professional accounting bodies, in relation to the quality of audits conducted by Australian auditors.
 (2C) Without limiting subsection (2B), the FRC functions also include giving strategic policy advice and reports, to the Minister and professional accounting bodies, in relation to any of the following:
 (a) the systems and processes used by Australian auditors to comply with:
 (i) the provisions of the Corporations Act dealing with the conduct of audits; and
 (ii) the auditing standards; and
 (iii) applicable codes of professional conduct;
 (b) the systems and processes used by professional accounting bodies for planning and performing quality assurance reviews of audit work undertaken by Australian auditors;
 (c) the action that Australian auditors who have been subject to such quality assurance reviews have taken in response to the reports prepared as a result of those reviews;
 (d) the action taken by professional accounting bodies to ensure that Australian auditors who have been subject to such quality assurance reviews respond appropriately to the reports prepared as a result of those reviews;
 (e) the investigation and disciplinary procedures of professional accounting bodies as those procedures apply to Australian auditors;
 (f) the adequacy of:
 (i) the provisions of the Corporations Act dealing with the conduct of audits; and
 (ii) the auditing standards; and
 (iii) applicable codes of professional conduct;
  in light of international developments in relation to audit quality;
 (g) the teaching of professional and business ethics by, or on behalf of, professional accounting bodies to the extent to which the teaching of those subjects relates to audit quality.
 (2D) A report under subsection (2B) or (2C) is not a legislative instrument.

Powers
 (3) As well as any other powers conferred by this Act, the FRC has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.
 (4) Without limiting subsection (3), the FRC may establish committees and advisory groups.

Restriction on powers
 (5) The FRC does not have power to direct the AASB in relation to the development, or making, of a particular standard.
 (6) The FRC does not have power to veto a standard made, formulated or recommended by the AASB.
 (7)