Financial Intermediaries Act 1996

A firm must not—

consent to be appointed as auditor of a society; or

act as auditor of a society; or

prepare a report required by this Act to be prepared by a registered company auditor or by an auditor of a society;

at least 1 member of the firm is a registered company auditor; and

if the business name under which the firm is carrying on business is not registered under the law of the State relating to business names—there has been filed with the registrar a return in the approved form showing, for 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; and

neither the firm nor the member of the firm responsible for conducting the audit, or signing the report, is indebted in an amount of more than $5000 to the society; and

no member of the firm is—

an officer of the society; or

a partner, employer or employee of an officer of the society; or

a partner or employee of an employee of an officer of the society; and

no officer of the society receives remuneration from the firm for acting as a consultant to it on accounting or auditing matters.

The appointment of a firm as auditor of a society is taken to be an appointment of all persons who are members of the firm and are registered company auditors, whether resident in Australia or not, as at the date of the appointment.

If a firm that has been appointed as auditor of a society is reconstituted because of the death, retirement or withdrawal of a member or members or because of the admission of a new member or new members, or both—

a person who was auditor because of subsection (2) and who has retired or withdrawn from the firm as previously constituted is taken to have resigned as auditor as from the day of the retirement or withdrawal but, unless the person was the only member of the firm who was a registered company auditor and, after the person’s retirement or withdrawal, there is no member of the firm who is a registered company auditor, sections 154 and 155 do not apply to the resignation; and

a person who is a registered company auditor and who is admitted to the firm is taken to have been appointed as an auditor of the society as from the date of admission to the firm; and

the reconstitution of the firm does not affect the appointment of the continuing members of the firm who are registered company auditors as auditors of the society.

Subsection (3) does not affect the operation of subsection (1).

Except as provided by subsection (3), the appointment of the members of a firm as auditors of a society because of the appointment of the firm as auditor of the society is not affected by the dissolution of the firm.

A report or notice purporting to be made or given by a firm appointed as auditor of a society is not taken to be duly made or given unless it is signed in the firm name and in his or her own name by a member of the firm who is a registered company auditor.

Each member of a firm must ensure the firm does not, in contravention of this section, consent to be appointed, or act as, auditor of a society, or prepare a report required by this Act to be prepared by an auditor of a society.