Limited term to play significant role in audit of a reporting unit
256A Limited term to play significant role in audit of a reporting unit
An individual must not play a significant role in the audit of a reporting unit:
for more than 5 consecutive financial years; or
for more than 5 out of 7 consecutive financial years.
Civil penalty: 200 penalty units.
Paragraph (1)(b) does not apply to an individual, in relation to a reporting unit and a series of 7 consecutive financial years, if the General Manager declares in writing that, in all the circumstances, it is not appropriate for that paragraph to apply to the individual in relation to the reporting unit and that series of 7 consecutive financial years.
A declaration made under subsection (2) is not a legislative instrument.
An individual plays a significant role in the audit of a reporting unit for a financial year if:
the individual holds the position of auditor of the reporting unit for the financial year; or
if a firm or company holds the position of auditor of the reporting unit for the financial year—the individual is a registered auditor who, on behalf of the firm or company:
participates in the preparation of an audit report in relation to a financial report of the reporting unit for the financial year or any part of the financial year; or
participates in the conduct of an audit in relation to the reporting unit for the financial year or any part of the financial year.
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