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CORPORATIONS ACT 2001

CHAPTER 2M - FINANCIAL REPORTS AND AUDIT  

PART 2M.3 - FINANCIAL REPORTING  

Division 3 - Audit and auditor's report  

SECTION 307C  AUDITOR'S INDEPENDENCE DECLARATION  

 View history reference

307C(1)  Contravention by individual auditor.  


If an individual auditor conducts:


(a) an audit or review of the financial report for a financial year; or
 View history reference


(b) an audit or review of the financial report for a half-year;

the individual auditor must give the directors of the company, registered scheme or disclosing entity:


(c) a written declaration that, to the best of the individual auditor's knowledge and belief, there have been:


(i) no contraventions of the auditor independence requirements of this Act in relation to the audit or review; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit or review; or


(d) a written declaration that, to the best of the individual auditor's knowledge and belief, the only contraventions of:


(i) the auditor independence requirements of this Act in relation to the audit or review; or

(ii) any applicable code of professional conduct in relation to the audit or review;
are those contraventions details of which are set out in the declaration.

307C(2)  [Strict liability offence]  


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

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

307C(3)  Contravention by lead auditor.  


If an audit firm or audit company conducts:


(a) an audit or review of the financial report for a financial year; or
 View history reference


(b) an audit or review of the financial report for a half-year;

the lead auditor for the audit must give the directors of the company, registered scheme or disclosing entity:


(c) a written declaration that, to the best of the lead auditor's knowledge and belief, there have been:


(i) no contraventions of the auditor independence requirements of this Act in relation to the audit or review; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit or review; or


(d) a written declaration that, to the best of the lead auditor's knowledge and belief, the only contraventions of:


(i) the auditor independence requirements of this Act in relation to the audit or review; or

(ii) any applicable code of professional conduct in relation to the audit or review;
are those contraventions details of which are set out in the declaration.

307C(4)  [Strict liability offence]  


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

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

307C(5)  [Deadline and signature]  


The declaration under subsection (1) or (3):


(a) either:

(i) must be given when the audit report is given to the directors of the company, registered scheme or disclosing entity; or

(ii) must satisfy the conditions in subsection (5A); and
 View history reference


(b) must be signed by the person making the declaration.

[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[233] contained the following application provision (which was effective 28 June 2007):

Application of items 34, 35, 38 to 41 and 169
(1) The amendments made by items 34, 35, 38 to 41 and 169 of this Schedule apply to a report for a financial year that ends on or after the day on which those items commence.
(2) A company, registered scheme or disclosing entity must notify each member of the company, scheme or entity for the purposes of subsection 314(1AB) of the Corporations Act 2001 (as inserted by item 38 of this Schedule) after that item commences.
(3) However, subitem (2) of this item does not apply in respect of a member of a company, registered scheme or disclosing entity if the member has previously requested, under section 316 of the Corporations Act 2001, the company, scheme or entity not to send him or her the material required by section 314 of that Act.
]

307C(5A)  [Requirements]  

 View history reference

A declaration under subsection (1) or (3) in relation to a financial report for a financial year or half-year satisfies the conditions in this subsection if:


(a) the declaration is given to the directors of the company, registered scheme or disclosing entity before the directors pass a resolution under subsection 298(2) or 306(3) (as the case requires) in relation to the directors' report for the financial year or half-year; and


(b) a director signs the directors' report within 7 days after the declaration is given to the directors; and


(c) the auditor's report on the financial report is made within 7 days after the directors' report is signed; and


(d) the auditor's report includes either of the following statements:


(i) a statement to the effect that the declaration would be in the same terms if it had been given to the directors at the time the auditor's report was made;

(ii) a statement to the effect that circumstances have changed since the declaration was given to the directors, and setting out how the declaration would differ if it had been given to the directors at the time the auditor's report was made.

[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[233] contained the following application provision (which was effective 28 June 2007):

Application of items 34, 35, 38 to 41 and 169
(1) The amendments made by items 34, 35, 38 to 41 and 169 of this Schedule apply to a report for a financial year that ends on or after the day on which those items commence.
(2) A company, registered scheme or disclosing entity must notify each member of the company, scheme or entity for the purposes of subsection 314(1AB) of the Corporations Act 2001 (as inserted by item 38 of this Schedule) after that item commences.
(3) However, subitem (2) of this item does not apply in respect of a member of a company, registered scheme or disclosing entity if the member has previously requested, under section 316 of the Corporations Act 2001, the company, scheme or entity not to send him or her the material required by section 314 of that Act.
]

307C(5B)  [When auditor not required to give declaration]  

 View history reference

An individual auditor or a lead auditor is not required to give a declaration under subsection (1) or (3) in respect of a contravention if:


(a) the contravention was a contravention by a person of subsection 324CE(2), 324CF(2) or 324CG(2); and


(b) the person does not commit an offence because of subsection 324CE(4), 324CF(4) or 324CG(4).

[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[233] contained the following application provision (which was effective 28 June 2007):

Application of items 34, 35, 38 to 41 and 169
(1) The amendments made by items 34, 35, 38 to 41 and 169 of this Schedule apply to a report for a financial year that ends on or after the day on which those items commence.
(2) A company, registered scheme or disclosing entity must notify each member of the company, scheme or entity for the purposes of subsection 314(1AB) of the Corporations Act 2001 (as inserted by item 38 of this Schedule) after that item commences.
(3) However, subitem (2) of this item does not apply in respect of a member of a company, registered scheme or disclosing entity if the member has previously requested, under section 316 of the Corporations Act 2001, the company, scheme or entity not to send him or her the material required by section 314 of that Act.
]

307C(6)  Self-incrimination.  


An individual is not excused from giving a declaration under subsection (1) or (3) on the ground that giving the declaration might tend to incriminate the individual or expose the individual to a penalty.

307C(7)  Use/derivative use indemnity.  


However, neither:


(a) the information included in the declaration; nor


(b) any information, document or thing obtained as a direct or indirect consequence of including the information in the declaration;

is admissible in evidence against the individual in any criminal proceedings, or in any proceedings that would expose the person to a penalty, other than:


(c) proceedings for an offence against section 1308 or 1309 in relation to the declaration; or


(d) proceedings for an offence against section 137.1 or 137.2 of the Criminal Code (false or misleading information or documents) in relation to the declaration.


 



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