Document ID: chunk:federal_register_of_legislation:C2004A01334:clause:1_307b:p1
Version: federal_register_of_legislation:C2004A01334
Segment Type: clause
Provision Reference: sch 1 cl 307B (pt 1/2)
Character Range: 42938–45556

307B  Audit working papers to be retained for 7 years

Contravention by individual auditor or audit company

 (1) An auditor contravenes this subsection if:
 (a) the auditor is an individual auditor or an audit company; and
 (b) the auditor conducts:
 (i) an audit of the financial report for a financial year; or
 (ii) an audit or review of the financial report for a half‑year; and
 (c) the auditor does not retain all audit working papers prepared by or for, or considered or used by, the auditor in accordance with the requirements of the auditing standards until:
 (i) the end of 7 years after the date of the audit report prepared in relation to the audit or review to which the audit working papers relate; or
 (ii) an earlier date determined for the audit working papers by ASIC under subsection (6).

 (2) An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability see section 6.1 of the Criminal Code.

Contravention by member of audit firm

 (3) A person (the defendant) contravenes this subsection if:
 (a) an audit firm conducts:
 (i) an audit of the financial report for a financial year; or
 (ii) an audit or review of the financial report for a half‑year; and
 (b) the audit firm fails, at a particular time, to retain all audit working papers prepared by or for, or considered or used by, the audit firm in accordance with the requirements of the auditing standards until:
 (i) the end of 7 years after the date of the audit report prepared in relation to the audit or review to which the documents relate; or
 (ii) the earlier date determined by ASIC for the audit working papers under subsection (6); and
 (c) the defendant is a member of the firm at that time.

 (4) An offence based on subsection (3) is an offence of strict liability.

Note 1: For strict liability see section 6.1 of the Criminal Code.

Note 2: Subsection (5) provides a defence.

 (5) A member of an audit firm does not commit an offence at a particular time because of a contravention of subsection (3) if the member either:
 (a) does not know at that time of the circumstances that constitute the contravention of subsection (3); or
 (b) knows of those circumstances at that time but takes all reasonable steps to correct the contravention as soon as possible after the member becomes aware of those circumstances.

Note: A defendant bears an evidential burden in relation to the matters in this subsection, see subsection 13.3(3) of the Criminal Code.

Earlier retention date for audit working papers

 (6) ASIC may, on application by a person, determine, in writing, an earlier date