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Audit Legislation Amendment Bill 2005
Audit Legislation Amendment Bill 2005
Explanatory Notes
General Outline
Policy Objectives
The objectives of the proposed amendments are to amend the qualifications
required in Queensland legislation for a person to conduct a financial audit
in order to make these qualifications consistent and equitable. (The
proposed amendments do not relate to any audits required to be conducted
by the Auditor-General.)
Reasons for the Bill
A review of relevant legislation reveals inconsistencies regarding the
qualifications required for persons to undertake a financial audit. Also, the
current legislative requirements for this purpose do not always treat
members of the National Institute of Accountants (NIA) consistently with
members of the other major professional accounting bodies, namely CPA
Australia and the Institute of Chartered Accountants in Australia.
It is proposed that qualifications for an approved auditor, that are consistent
and treat members of all three major professional accounting bodies in the
same manner, should be used throughout Queensland legislation.
Achievement of the Objectives
The proposed amendments will specify the required minimum level of
membership for the three major professional accounting bodies, where the
legislation currently requires that a person be merely a member of the
professional body. Also, the proposed amendments will have the effect that
members of all three major professional accounting bodies will be equally
eligible for appointment as an auditor.
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Audit Legislation Amendment Bill 2005
Alternatives to the Bill
It is considered that the policy objectives can only be achieved by
amending the various Acts which stipulate the qualifications required for a
person to conduct a financial audit.
Estimated Cost for Government Implementation
It is considered that implementing the proposed Bill will not result in any
cost to Government.
Consistency with Fundamental Legislative Principles
There are no fundamental legislative principles issues with the proposed
amendments.
Consultation
All Ministers have been consulted. All parties whose legislation is being
amended agree with the proposed amendments.
The Attorney-General, who is responsible for two relevant Acts that
stipulate qualifications for auditors, has advised that the Department of
Justice intends to conduct its own review later this year and prefers not to
be included in this round of amendments.
Notes on Provisions
Part 1
This part provides for the short title of the Bill.
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Audit Legislation Amendment Bill 2005
Part 2
This part amends the Associations Incorporation Act 1981. It includes the
prescribed categories of NIA members on the same basis as members of
other professional accounting bodies who may conduct an audit. It also
prescribes the level of membership required. Currently, the legislation does
not specify any minimum level of membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Part 3
This part amends the Building Units and Group Titles Act 1980. It includes
the prescribed categories of NIA members on the same basis as members of
other professional accounting bodies who may conduct an audit. It also
prescribes the level of membership required. Currently, the legislation does
not specify any minimum level of membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Also, this Part removes a redundant reference to the Public Accountants
Registration Act 1946, which has been repealed.
Part 4
This part amends the Charitable and Non-Profit Gaming Act 1999. It
includes the prescribed categories of NIA members on the same basis as
members of other professional accounting bodies who may conduct an
audit.
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Audit Legislation Amendment Bill 2005
Part 5
This part amends the Charitable Funds Act 1958. It includes the
prescribed categories of NIA members on the same basis as members of
other professional accounting bodies who may conduct an audit. It also
prescribes the level of membership required. Currently, the legislation does
not specify any minimum level of membership required.
Part 6
This part amends the Collections Act 1966. It includes the prescribed
categories of NIA members on the same basis as members of other
professional accounting bodies who may conduct an audit. It also
prescribes the level of membership required. Currently, the legislation does
not specify any minimum level of membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Part 7
This part amends the Currumbin Bird Sanctuary Act 1976. That Act
erroneously refers to the annual report prepared under section 28 of `the
Act'. `The Act' is defined to mean the National Trust of Queensland Act
1963. However, section 28 of the National Trust of Queensland Act 1963
does not require the preparation of an annual report. As a statutory body,
the National Trust of Queensland must prepare an annual report under the
Financial Administration and Audit Act 1977. The amendment corrects
this error.
The Currumbin Bird Sanctuary Act 1976 also refers to the appointment of a
public accountant as an auditor under the National Trust of Queensland Act
1963. However, the National Trust of Queensland Act 1963 does not
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Audit Legislation Amendment Bill 2005
provide for the appointment of a public accountant as an auditor.
Moreover, this reference has become redundant since the repeal of the
Public Accountants Registration Act 1946. As a statutory body, the
National Trust of Queensland must be audited by the Auditor-General. The
amendment corrects this error.
Part 8
This part amends the Electricity Act 1994. It includes the prescribed
categories of NIA members on the same basis as members of other
professional accounting bodies who may conduct an audit.
Part 9
This part amends the Funeral Benefit Business Act 1982. It includes the
prescribed categories of NIA members on the same basis as members of
other professional accounting bodies who may conduct an audit. It also
prescribes the level of membership required. Currently, the legislation does
not specify any minimum level of membership required.
Part 10
This part amends the Gaming Machine Act 1991. It includes the prescribed
categories of NIA members on the same basis as members of other
professional accounting bodies who may conduct an audit.
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Audit Legislation Amendment Bill 2005
Part 11
This part amends the Gas Supply Act 2003. It includes the prescribed
categories of NIA members on the same basis as members of other
professional accounting bodies who may conduct an audit.
Part 12
This part amends the Land Act 1994. It includes the prescribed categories
of NIA members on the same basis as members of other professional
accounting bodies who may conduct an audit. It also prescribes the level of
membership required. Currently, the legislation does not specify any
minimum level of membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Part 13
This part amends the Metropolitan Water Supply and Sewerage Act 1909.
It includes the prescribed categories of NIA members on the same basis as
members of other professional accounting bodies who may conduct an
audit. It also prescribes the level of membership required. Currently, the
legislation does not specify any minimum level of membership required.
Part 14
This part amends the Petroleum and Gas (Production and Safety) Act 2004.
It includes the prescribed categories of NIA members on the same basis as
members of other professional accounting bodies who may conduct an
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Audit Legislation Amendment Bill 2005
audit. It also prescribes the level of membership required. Currently, the
legislation does not specify any minimum level of membership required.
Part 15
This part amends the Property Agents and Motor Dealers Act 2000. It
includes the prescribed categories of NIA members on the same basis as
members of other professional accounting bodies who may conduct an
audit. It also prescribes the level of membership required. Currently, the
legislation does not specify any minimum level of membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Part 16
This part amends the Queensland Police Welfare Club Act 1970. The Act
currently provides for the appointment of an auditor who is registered as a
public accountant or otherwise sufficiently qualified to conduct an audit.
This reference has become redundant since the repeal of the Public
Accountants Registration Act 1946. Also, the existing provision provides
no guidance as to what is meant by the term `sufficiently qualified to
conduct an audit'.
In lieu of this, the amendment provides for members of the three
professional accounting bodies as persons who may conduct an audit. It
also prescribes the level of membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit.
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Audit Legislation Amendment Bill 2005
Part 17
This part amends the Retirement Villages Act 1999. It includes the
prescribed categories of NIA members on the same basis as members of
other professional accounting bodies who may conduct an audit.
Part 18
This part amends the Security Providers Act 1993. It includes the
prescribed categories of NIA members on the same basis as members of
other professional accounting bodies. It also prescribes the level of
membership required. Currently, the legislation does not specify any
minimum level of membership required.
Part 19
This part amends the South Bank Corporation Act 1989. It includes the
prescribed categories of NIA members on the same basis as members of
other professional accounting bodies who may conduct an audit. It also
prescribes the level of membership required. Currently, the legislation does
not specify any minimum level of membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Also, this Part removes a redundant reference to the Public Accountants
Registration Act 1946, which has been repealed.
Part 20
This part amends the Wagering Act 1998. It includes the prescribed
categories of NIA members on the same basis as members of other
professional accounting bodies who may conduct an audit.
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Audit Legislation Amendment Bill 2005
Part 21
This part provides for a schedule which amends the regulations mentioned
in it.
Schedule 1 Amendment of Other Audit
Legislation
Aboriginal Land Act 1991
A transitional provision is included to clarify that the amendment of the
Aboriginal Land Regulation 1991 does not affect the power of the
Governor in Council to further amend that regulation or to repeal it.
Aboriginal Land Regulation 1991
The amendment includes the prescribed categories of NIA members on the
same basis as members of other professional accounting bodies who may
conduct an audit. It also prescribes the level of membership required.
Currently, the legislation does not specify any minimum level of
membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Body Corporate and Community Management Act 1997
A transitional provision is included to clarify that the amendment of the
following regulations:
(a) Body Corporate and Community Management (Accommodation
Module) Regulation 1997;
(b) Body Corporate and Community Management (Commercial
Module) Regulation 1997;
(c) Body Corporate and Community Management (Small Schemes
Module) Regulation 1997; and
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Audit Legislation Amendment Bill 2005
(d) Body Corporate and Community Management (Standard
Module) Regulation 1997
does not affect the power of the Governor in Council to further amend the
regulations or to repeal them.
Body Corporate and Community Management (Accommodation Module)
Regulation 1997
The amendment includes the prescribed categories of NIA members on the
same basis as members of other professional accounting bodies who may
conduct an audit. It also prescribes the level of membership required.
Currently, the legislation does not specify any minimum level of
membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Body Corporate and Community Management (Commercial Module)
Regulation 1997
The amendment includes the prescribed categories of NIA members on the
same basis as members of other professional accounting bodies who may
conduct an audit. It also prescribes the level of membership required.
Currently, the legislation does not specify any minimum level of
membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Body Corporate and Community Management (Small Schemes Module)
Regulation 1997
Currently, this provision gives the body corporate total discretion as to who
it can appoint as an auditor. The amendment places limitations on that
discretion and provides for members of the three professional accounting
bodies as persons who may conduct an audit. It also prescribes the level of
membership required.
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Audit Legislation Amendment Bill 2005
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. Also, the existing provision
contains an incorrect reference to the definition of an auditor in schedule 4
of the Act. This definition is in fact in schedule 6 of the Act and the
amendment corrects this error.
Body Corporate and Community Management (Standard Module)
Regulation 1997
The amendment includes the prescribed categories of NIA members on the
same basis as members of other professional accounting bodies who may
conduct an audit. It also prescribes the level of membership required.
Currently, the legislation does not specify any minimum level of
membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
Financial Administration and Audit Act 1977
A transitional provision is included to clarify that the amendment of the
Financial Administration and Audit Regulation 1995 does not affect the
power of the Governor in Council to further amend that regulation or to
repeal it.
Financial Administration and Audit Regulation 1995
The current provision merely specifies, inter alia, a `qualified accountant'
as a person who may be appointed as an auditor. The amendment replaces
this term with members of the three professional accounting bodies as
persons who may conduct an audit. It also prescribes the level of
membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit.
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Audit Legislation Amendment Bill 2005
Torres Strait Islander Land Act 1991
A transitional provision is included to clarify that the amendment of the
Torres Strait Islander Land Regulation 1991 does not affect the power of
the Governor in Council to further amend that regulation or to repeal it.
Torres Strait Islander Land Regulation 1991
The amendment includes the prescribed categories of NIA members on the
same basis as members of other professional accounting bodies who may
conduct an audit. It also prescribes the level of membership required.
Currently, the legislation does not specify any minimum level of
membership required.
A transitional provision is included so that an auditor who was appointed
before these amendments commenced and who does not satisfy the new
qualifications, can complete the audit. However, this scenario is
considered extremely unlikely as the amendments expand the categories of
persons eligible for appointment as an auditor.
© State of Queensland 2005