48Audits of tier 3 incorporated association

48 Audits of tier 3 incorporated association (1) This section applies to an incorporated association (a tier 3 incorporated association) that: (a) is an incorporated trading association; or

Associations Act 2003 34 (b) has gross receipts, at the end of a financial year of the (c) has gross assets, at the end of a financial year of the (d) is an incorporated association for which a declaration under section 101 has been made. (2) The association must ensure its accounts are audited by: (a) for an incorporated association described in subsection (1)(a), (b) or (c) – a person who holds a public practice certificate issued by an accountants body; or (b) for an incorporated association described in subsection (1)(a), (b) or (c) – a person who is, or is a member of a class of persons, approved by the Director; or (c) for an incorporated association described in subsection (1)(d) – a person who is registered as an auditor under the Corporations Act 2001. (3) If an incorporated association contravenes subsection (2), each (4) The auditor must report to the association on: (a) the statement of accounts required to be laid before the association at the annual general meeting; and (b) the association's accounting records; and (c) other records relating to the accounts or accounting records. (5) The auditor must state in the report: (a) whether the accounts are in the auditor's opinion properly drawn up: (i) so as to give a true and fair view of matters required by section 42(2) to be dealt with in the accounts; (ii) in accordance with this Act; and (iii) in accordance with applicable Australian accounting standards;

Associations Act 2003 35 (b) if, in the auditor's opinion, the accounts have not been drawn up in accordance with the applicable accounting standards: (i) whether, in the auditor's opinion, the accounts would, if drawn up in accordance with the applicable accounting standards, have given a true and fair view of the matters required by section 42(2) to be dealt with in the accounts; (ii) if, in the auditor's opinion, the accounts would not, if so drawn up, have given a true and fair view of those matters – the auditor's reasons for being of that opinion; and (iii) if subparagraph (ii) does not apply – particulars of the quantified financial effect on the accounts of the failure to so draw up the accounts; (c) if, in the auditor's opinion, there are reasonable grounds to believe the association will be able to pay its debts when they fall due; (d) the defects or irregularities in the accounts identified during the audit; (e) the matters that, because they are not set out in the accounts, prevent a true and fair view of the accounts being obtained; and (f) if the auditor is not so satisfied about a matter referred to in paragraphs (a) to (c), the auditor's reasons for not being so satisfied. (6) The auditor must: (a) form an opinion as to whether: (i) the auditor has obtained all the information and explanations the auditor required; and (ii) proper accounting records and other records have been kept by the association as required by this Act; and (b) state in the auditor's report particulars of a deficiency, failure or shortcoming in relation to a matter referred to in paragraph (a). (7) The auditor's report: (a) must be attached to or endorsed on the accounts; and