65Appointing an auditor or reviewer for small co-operative (optional rule) (CNL s298)

65 Appointing an auditor or reviewer for small co-operative (optional rule) (CNL s298)

65 Appointing an auditor or reviewer for small co-operative (optional rule) (CNL s298)

Note 1—

If a co-operative is a small co-operative in a particular financial year, there is no requirement to appoint an auditor, unless the co-operative is directed to prepare audited or reviewed financial statements by its members or by the Registrar. A small co-operative may choose to appoint an auditor or a reviewer to have its financial statements to members either audited or reviewed each financial year where there is no direction from members or the Registrar.

Note 2—

A review may be carried out by a person who:

• is a member of the Institute of Chartered Accountants in Australia and holds a Certificate of Public Practice issued by that body

• is a member of CPA Australia Ltd and holds a Public Practice Certificate issued by that body

• is a member of the Institute of Public Accountants and holds a Professional Practice Certificate issued by that body

Note 3—

Large co-operatives are required to appoint an auditor in accordance with the procedures under the Law. A large co-operative is one that is not classified as a small co-operative under the National Regulations.

Note 4—

The following rule is suitable for a small co-operative that wishes to require its financial statements be either audited or reviewed.

(1) The co-operative must appoint an auditor/a reviewer (strike out whichever is not applicable) in respect of its financial statements.

(2) An auditor/a reviewer (strike out whichever is not applicable) appointed under this rule is to conduct an audit/review (strike out whichever is not applicable) of the co-operative’s financial statements as presented to members.

(3) The appointment of an auditor/a reviewer (strike out whichever is not applicable) under this rule is to be made at an annual general meeting.

(4) The co-operative may appoint another auditor / reviewer (strike out whichever is not applicable) at a subsequent annual general meeting if there is a vacancy in the office of the auditor/reviewer (strike out whichever is not applicable).

(5) The provisions of section 300(2) of the Law apply to an auditor/a reviewer appointed under this rule in the same way (but with any necessary adaptations) as they apply to an auditor appointed for a large co-operative.