Appointing an auditor or reviewer for small co-operative (optional rule) (CNL s298)
65 Appointing an auditor or reviewer for small co-operative (optional rule) (CNL s298)
1—
If a co-operative is a small co-operative in a particular financial year, there is no requirement to appoint an auditor, unless the co-operative is directed to prepare audited or reviewed financial statements by its members or by the Registrar. A small co-operative may choose to appoint an auditor or a reviewer to have its financial statements to members either audited or reviewed each financial year where there is no direction from members or the Registrar.
2—
A review may be carried out by a person who:
• is a member of the Institute of Chartered Accountants in Australia and holds a Certificate of Public Practice issued by that body
• is a member of CPA Australia Ltd and holds a Public Practice Certificate issued by that body
• is a member of the Institute of Public Accountants and holds a Professional Practice Certificate issued by that body Note 3—
Large co-operatives are required to appoint an auditor in accordance with the procedures under the Law. A large co-operative is one that is not classified as a small co-operative under the National Regulations.
4—
The following rule is suitable for a small co-operative that wishes to require its financial statements be either audited or reviewed.
The co-operative must appoint an auditor/a reviewer (strike out whichever is not applicable) in respect of its financial statements.
An auditor/a reviewer (strike out whichever is not applicable) appointed under this rule is to conduct an audit/review (strike out whichever is not applicable) of the co-operative’s financial statements as presented to members.
The appointment of an auditor/a reviewer (strike out whichever is not applicable) under this rule is to be made at an annual general meeting.
The co-operative may appoint another auditor/reviewer (strike out whichever is not applicable) at a subsequent annual general meeting if there is a vacancy in the office of the auditor/reviewer (strike out whichever is not applicable).
The provisions of section 300
of the Law apply to an auditor/a reviewer (strike out whichever is not applicable) appointed under this rule in the same way (but with any necessary adaptations) as they apply to an auditor appointed for a large co-operative.
Note—
See section 310 of the Law regarding the removal and resignation of auditors.
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