CORPORATIONS REGULATIONS 2001 - SCHEDULE 5C Conduct of auditor--relevant relationships
CORPORATIONS REGULATIONS 2001 - SCHEDULE 5C
Conduct of auditor--relevant relationships(regulation 2M.6.05)
(1) Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.
(2) The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(5) of the Act (including the subheading) and substituting the following subheading and subsection:
Ordinary course of business exception
(5) For the purposes of item 15 of the table in subsection (1):
(a) disregard a debt owed by an individual to a body corporate or entity if:
(i) the body corporate or entity is:
(A) an Australian ADI; or
(B) a body corporate registered under the Life Insurance Act 1995 ; and
(ii) the debt arose because of a loan that the body corporate or entity made to the person in the ordinary course of its ordinary business; and
(iii) the person used the amount of the loan to pay the whole or part of the purchase price of premises that the person uses as their principal place of residence; and
(b) disregard a debt owed by the person or firm to a body corporate or entity if:
(i) the debt is on normal terms and conditions, and arises from the acquisition of goods or services on normal trading terms from:
(A) the audited body; or
(B) an entity that the audited body controls; or
(C) a related body corporate; and
(ii) the goods or services will be used by the person or firm:
(A) for the personal use of the person or firm; or
(B) in the ordinary course of business of the person or firm.
(1) Subclause (2) applies in relation to audit activity in relation to a financial year that ends on or after the commencement of this Schedule.
(2) The operation of Chapter 2M of the Act is modified by omitting subsection 324CH(6) of the Act (including the subheading) and substituting the following subheading and subsection:
Loans by immediate family members and amounts on call
(6) For the purposes of item 16 of the table in subsection (1):
(a) disregard a debt owed to a person by a body corporate or entity if:
(i) the item applies to the person because the person is an immediate family member of:
(A) a professional member of the audit team conducting the audit of the audited body; or
(B) a non - audit services provider; and
(ii) the debt is incurred in the ordinary course of business of the body corporate or entity; and
(b) disregard an amount owed to the person or firm by the audited body, a related body corporate or an entity that the audited body controls if:
(i) the body, body corporate or entity is an Australian ADI; and
(ii) the amount is in a basic deposit product provided by the body, body corporate or entity; and
(iii) the amount was deposited in the ordinary course of the business of the audited body, body corporate or entity, and on the terms and conditions that normally apply to basic deposit products provided by the body, body corporate or entity.
3 Public company auditor (annual appointments at AGMs to fill vacancies)
(1) Subclause (2) applies to:
(a) all companies; and
(b) all registered schemes; and
(c) all disclosing entities;
only in relation to audit activity that is conducted on or after the commencement of this Schedule.
(2) The operation of Chapter 2M of the Act is modified by omitting from subsections 327B(2A), (2B) and (2C) of the Act "21 days" and inserting "21 days, or such longer period as ASIC allows,".