COMPANIES ACT 1981 No. 89 of 1981 - SECT 18 Registration of auditors

COMPANIES ACT 1981 No. 89 of 1981 - SECT 18

18. (1) Subject to this section, where an application for registration as an
auditor is made under section 17 and before the expiration of 6 months after
the date of commencement of this Act by a person who was, immediately before
that date, registered as a company auditor under the Companies Ordinance 1962-

   (a)  the Commission shall grant the application and register the applicant
        as an auditor unless the Commission is satisfied that the person is
        not a fit and proper person to be registered as an auditor; and

   (b)  if the Commission is satisfied that the person is not a fit and proper
        person to be registered as an auditor, the Commission shall refuse the
        application.

(2) Subject to this section, where an application for registration as an
auditor (not being an application to which sub-section (1) applies) is made
under section 17, the Commission shall grant the application and register the
applicant as an auditor if-

   (a)  the applicant-

        (i)    is a member of the The Institute of Chartered Accountants in
               Australia, the Australian Society of Accountants or any other
               prescribed body;

        (ii)   holds a degree, diploma or certificate from a prescribed
               university or another prescribed institution in Australia and
               has passed examinations in such subjects, under whatever name,
               as the appropriate authority of the university or other
               institution certifies to the Commission to represent a course
               of study in accountancy (including auditing) of not less than 3
               years' duration and in commercial law (including company law)
               of not less than 2 years' duration; or

        (iii)  has other qualifications and experience that, in the opinion of
               the Commission, are equivalent to the qualifications mentioned
               in sub-paragraph (i) or (ii);

   (b)  the Commission is satisfied that the applicant has had such practical
        experience in auditing as is prescribed; and

   (c)  the Commission is satisfied that the applicant is capable of
        performing the duties of an auditor and is otherwise a fit and proper
        person to be registered as an auditor, but otherwise the Commission
        shall refuse the application.

(3) The Commission shall not register as an auditor a person who-

   (a)  is prohibited, by virtue of an order made under section 562 or under
        any provision of a law, or a previous law, of a State or Territory
        that corresponds with that section, from acting as a director of, or
        from being concerned in or taking part in the management of, a company
        or other corporation; or

   (b)  is, by virtue of section 227, prohibited, without the leave of the
        Court, from acting as a director or promotor of, or from being
        concerned in or taking part in the management of, a corporation.

(4) Subject to sub-section (8), the Commission may refuse to register as an
auditor a person who is not resident in Australia.

(5) Where the Commission grants an application by a person for registration as
an auditor, the Commission shall cause to be issued to the person a
certificate by the Commission stating that the person has been registered as
an auditor and specifying the date on which the application was granted.

(6) Where-

   (a)  in a certificate issued to a person under sub-section (5) (including a
        certificate issued pursuant to this sub-section) a date is specified
        for the purposes of sub-section 26 (2); and

   (b)  the person requests the Commission to alter the date so specified and
        surrenders the certificate to the Commission, the Commission may
        cancel the certificate and issue to the person under sub-section (5),
        in place of the cancelled certificate, a new certificate that
        specifies a different date for the purposes of sub-section 26 (2).

(7) A registration under this section shall be deemed to have taken effect at
the commencement of the day specified in the certificate as the date on which
the application for registration was granted and remains in force until-

   (a)  the registration is cancelled by the Commission or by the Companies
        Auditors and Liquidators Disciplinary Board; or

   (b)  the person who is registered dies.

(8) The Commission shall not refuse to register a person as an auditor unless
the Commission has afforded the person an opportunity to appear at a hearing
before the Commission and to make submissions and give evidence to the
Commission in relation to the matter.

(9) Where the Commission refuses an application by a person for registration
as an auditor, the Commission shall, not later than 14 days after the
decision, give to the person notice in writing setting out the decision and
setting out the findings on material questions of fact, referring to the
evidence or other material on which those findings were based and giving the
reasons for the decision.