76Audit reports

76 Audit reports (1) This section applies if an auditor is appointed by a medium or large association to audit the association’s statement of accounts. (2) The auditor must report to the association on the accounts required to be laid before the association at the annual general meeting and on the association’s accounting records and other records relating to those accounts. (3) The auditor must, in a report under this section, state— (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 72 (2) to be dealt with in the accounts; and (ii) in accordance with the provisions of this Act; and (iii) in accordance with the accounting standards; and (b) if, in the auditor’s opinion, the accounts have not been drawn up in accordance with the accounting standards— (i) whether, in the auditor’s opinion, the accounts would, if drawn up in accordance with the accounting standards, have given a true and fair view of the matters required by section 72 (2) to be dealt with in the accounts; and (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; and (c) any defect or irregularity in the accounts and any matter not set out in the accounts without regard to which a true and fair view of the matters dealt with by the accounts would not be obtained; and (d) if the auditor is not so satisfied about any matter referred to in paragraph (a) or (b)—the auditor’s reasons for not being so satisfied. (4) It is the duty of the auditor to form an opinion about each of the following matters: (a) whether the auditor has obtained all the information and explanations that the auditor required; (b) whether proper accounting records and other records have been kept by the association as required by this Act; and the auditor must state in the auditor’s report particulars of any deficiency, failure or shortcoming in relation to any matter referred to in this subsection. (5) The auditor has a right of access at all reasonable times to the accounting records and other records of the association and is entitled to require from any officer of the association any information and explanations the auditor desires for the purpose of auditing the association’s accounts. (6) The auditor’s report must be attached to or endorsed on the accounts and must, if a member so requires, be read before the association at the annual general meeting, and is open to inspection by a member at any reasonable time. (7) The auditor or an agent of the auditor authorised by the auditor in writing for the purpose is entitled to attend any general meeting of the association and to receive all notices of and other communications relating to any general meeting that a member is entitled to receive and to be heard at any general meeting that the auditor attends on any part of the business of the meeting that concerns the auditor in the capacity of auditor and is entitled so to be heard even if the auditor retires at that meeting or a resolution to remove the auditor from office is passed at that meeting. (8) If the auditor becomes aware that the association or the committee have made default in complying with section 69 or 73 relating to the laying of accounts before the annual general meeting of the association, the auditor must immediately inform the registrar- general by notice in writing and if accounts have been prepared and audited, send to the registrar-general a copy of the accounts and of the auditor’s report on those accounts. (9) Except in a case to which subsection (8) applies, if the auditor, in the course of the performance of duties as auditor is satisfied that— (a) there has been a contravention of this Act; and (b) the circumstances are such that in the auditor’s opinion the matter has not been or will not be adequately dealt with by comment in the auditor’s report on the accounts or by bringing the matter to the notice of the committee of the association; the auditor must immediately report the matter to the registrar-general by notice in writing. (10) In this section: accounting standard—see the Corporations Act, section 9.