Corporations Act 2001

A person (the defendant) contravenes this subsection if:

at a particular time, a firm:

consents to be appointed as auditor of a company, registered scheme or registrable superannuation entity; or

acts as auditor of a company, registered scheme or registrable superannuation entity; or

prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company, registered scheme or registrable superannuation entity; and

at that time, the firm:

does not satisfy subsection (5); or

does not satisfy subsection (6); and

the defendant is a member of the firm at that time; and

the defendant is aware of the circumstances referred to in paragraphs (a) and (b) at that time.

A person (the defendant) contravenes this subsection if:

at a particular time, a firm:

consents to be appointed as auditor of a company, registered scheme or registrable superannuation entity; or

acts as auditor of a company, registered scheme or registrable superannuation entity; or

prepares a report required by this Act to be prepared by a registered company auditor or by an auditor of a company, registered scheme or registrable superannuation entity; and

at that time, the firm:

does not satisfy subsection (5); or

does not satisfy subsection (6); and

the defendant is a member of the firm at that time.

For the purposes of an offence based on subsection (2), strict liability applies to the physical elements of the offence specified in paragraphs (2)(a) and (b).

For strict liability, see section 6.1 of the Criminal Code.

Subsection (4) provides a defence.

A member of an audit firm does not commit an offence at a particular time because of a contravention of subsection (2) if the member either:

does not know at that time of the circumstances that constitute the contravention of subsection (2); or

does know 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.

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

The firm satisfies this subsection if at least 1 member of the firm is a registered company auditor who is ordinarily resident in Australia or New Zealand.

The firm satisfies this subsection if:

the business name under which the firm is carrying on business is registered on the Business Names Register; or

a return in the prescribed form has been lodged showing, in relation to each member of the firm, the member’s full name and address as at the time when the firm so consents, acts or prepares a report.