19Auditors who prepare audit reports

#### 19 Auditors who prepare audit reports (1) For paragraph 106(c) of the Act, this regulation: (a) sets out who is eligible to be an auditor for the purpose of preparing the audit reports mentioned in paragraph 102(1)(b) of the Act; and (b) sets out when a person may be appointed as an auditor. > Note: Paragraph 106(c) of the Act provides that the regulations may make provision in relation to the auditors that prepare the audit reports mentioned in paragraphs 106(a) and (b) of the Act. Eligibility to be an auditor (2) A person is eligible to be appointed as an auditor for the purpose mentioned in paragraph (1)(a) only if: (a) the person is a registered company auditor or an authorised audit company (within the meaning given by section 9 of the Corporations Act); and (b) the person: (i) is not an employee, director or partner: (A) of the licensee; or (B) of any other person carrying on a business of engaging in credit activities; and (ii) is not carrying on a business of engaging in credit activities. Appointment as an auditor (3) A licensee must: (a) within 3 months of being required to open a trust account, appoint a person who meets the requirements of subregulation (2) to be the licensee’s auditor; and (b) lodge with ASIC a notice, in the approved form, of the appointment within 14 days after appointing the person. (4) If a person is appointed as a licensee’s auditor, the appointment is continuous until the first of the following events occurs: (a) the licensee is no longer required to keep a trust account; (b) the auditor dies or otherwise ceases to engage in the business of being an auditor; (c) the auditor is unable to perform his or her duties as the licensee’s auditor; (d) ASIC approves the auditor’s resignation; (e) ASIC approves a request by the licensee to replace the person as an auditor. (5) If a person ceases to be a licensee’s auditor under paragraph (4)(b), (c), (d) or (e), the licensee must: (a) within 28 days of the cessation of the appointment, appoint another person who meets the requirements of subregulation (2) to be the licensee’s auditor; and (b) lodge with ASIC a notice, in the approved form, of the appointment within 14 days after appointing the person.