Relief for timing of auditor’s independence declaration

4. An individual auditor and a lead auditor do not have to comply with subsections 307C(1) and (3) of the Act respectively to the extent that a declaration that they are required to give to the directors (the relevant directors) of a company, registered scheme or disclosing entity under those subsections must be given at the time specified in subsection 307C(5) of the Act.

5. This relief may be relied on only where all of the following apply:

(a) The declaration is given to the relevant directors before they pass the resolution required under subsection 298(2) or 306(3) of the Act (as relevant) in relation to the directors’ report (which must, under subsection 298(1) or 306(2) of the Act, include a copy of the declaration).

(b) The directors’ report is signed within 7 days after the declaration is given.

(c) The auditor’s report required under section 308 or 309 of the Act for the audit or review to which the declaration relates is made within 7 days after the directors’ report is signed and either:

(i) includes a statement to the effect that the declaration would be in the same terms if it had been given to the relevant directors at the time the audit report was made; or

(ii) includes statements:

(A) to the effect that circumstances have changed since the declaration was given to the relevant directors; and

(B) setting out how the declaration would differ if it had been given to the relevant directors at the time the audit report was made.

Dated this 4th day of February 2005

Signed by Brendan Byrne
as a delegate of the Australian Securities and Investments Commission