137Qualifications of auditors

#### 137 Qualifications of auditors 137 Qualifications of auditors > > (1) In this section— > > > > officer of a society includes a receiver who is not also a manager. > > > (2) For the purposes of subsections (4) and (5), a person is taken to be an officer of a society if— > > > > > (a) the person is an officer of an entity controlled by the society or a body corporate related to the society, or > > > > > (b) except if the Registrar directs that this paragraph not apply in relation to the person—the person has, at any time during the last 12 months, been an officer or promoter of the society or of an entity that is controlled by the society. > > > (3) For the purposes of this section, a person is not taken to be an officer of a society by reason only of— > > > > > (a) being or having been the liquidator of the society or of an entity controlled by the society, or > > > > > (b) having been appointed as auditor of the society or of an entity controlled by the society or, for any purpose relating to taxation, a public officer of a body corporate, or > > > > > (c) being or having been authorised to accept, on behalf of the society or an entity controlled by the society, service of process or any notices required to be served on the society or entity. > > > (4) Subject to this section, a person must not— > > > > > (a) consent to be appointed as auditor of a society, or > > > > > (b) act as auditor of a society, or > > > > > (c) prepare a report required by this Act to be prepared by a registered company auditor or by an auditor of a society, > > > > if— > > > > > (d) the person is not a registered company auditor, or > > > > > (e) the person is not ordinarily resident in this State, or > > > > > (f) the person is indebted in an amount exceeding $5,000 to the society or to a related body corporate, or > > > > > (g) the person— > > > > > > > (i) is an officer of the society, or > > > > > > > (ii) is a partner, employer or employee of an officer of the society, or > > > > > > > (iii) is a partner or employee of an employee of an officer of the society. > > > > Maximum penalty—20 penalty units. > > > (5) Subject to this section, a firm must not— > > > > > (a) consent to be appointed as auditor of a society, or > > > > > (b) act as auditor of a society, or > > > > > (c) prepare a report required by this Act to be prepared by a registered company auditor or by an auditor of a society, > > > > unless— > > > > > (d) at least 1 member of the firm is a registered company auditor who is ordinarily resident in this State, and > > > > > (e) if the business name under which the firm is carrying on business is not registered under the law of this State relating to business names—there has been lodged with the Registrar a return in the approved form showing, in relation to each member of the firm, the member’s full name and address as at the time when the firm so consents, acts or prepares a report, and > > > > > (f) neither the firm nor the member of the firm responsible for conducting the audit, or signing the report, is indebted in an amount exceeding $5,000 to the society or to a related body corporate, and > > > > > (g) no member of the firm is— > > > > > > > (i) an officer of the society, or > > > > > > > (ii) a partner, employer or employee of an officer of the society, or > > > > > > > (iii) a partner or employee of an employee of an officer of the society, and > > > > > (h) no officer of the society receives any remuneration from the firm for acting as a consultant to it on accounting or auditing matters. > > > (6) The appointment of a firm as auditor of a society is taken to be an appointment of all persons who are members of the firm and are registered company auditors, whether resident in Australia or not, as at the date of the appointment. > > > (7) If a firm that has been appointed as auditor of a society is reconstituted because of the death, retirement or withdrawal of a member or members or because of the admission of a new member or new members, or both— > > > > > (a) a person who was an auditor of the society by virtue of subsection (6) and who has so retired or withdrawn from the firm as previously constituted is taken to have resigned as auditor of the society as from the day of that retirement or withdrawal but, unless that person was the only member of the firm who was a registered company auditor and, after the retirement or withdrawal of that person, there is no member of the firm who is a registered company auditor, section 140 (Removal and resignation of auditors) does not apply to that resignation, and > > > > > (b) a person who is a registered company auditor and who is so admitted to the firm is taken to have been appointed as an auditor of the society as from the date of admission to the firm, and > > > > > (c) the reconstitution of the firm does not affect the appointment of the continuing members of the firm who are registered company auditors as auditors of the society, > > > > but nothing in this subsection affects the operation of subsection (5). > > > (8) Except as provided by subsection (7), the appointment of the members of a firm as auditors of a society by virtue of the appointment of the firm as auditor of the society is not affected by the dissolution of the firm. > > > (9) A report or notice that purports to be made or given by a firm appointed as auditor of a society is not taken to be duly made or given unless it is signed in the firm name and in his or her own name by a member of the firm who is a registered company auditor. > > > (10) If, in contravention of this section, a firm consents to be appointed, or acts as, auditor of a society, or prepares a report required by this Act to be prepared by an auditor of a society, each member of the firm commits an offence. > > > > Maximum penalty—20 penalty units. > > > (11) A person must not— > > > > > (a) if appointed auditor of a society—knowingly disqualify himself or herself while the appointment continues from acting as auditor of the society, or > > > > > (b) if a member of a firm that has been appointed auditor of a society—knowingly disqualify the firm while the appointment continues from acting as auditor of the society. > > **s 137:** Am 2016 No 27, Sch 1.9 \[8\].