19Audits

19 Audits

(1) In relation to each *financial year, the trustee of a *private ancillary fund must arrange for a registered company auditor (within the meaning of the Corporations Act 2001) to audit (in accordance with this section): (a) the financial report of the fund; and (b) compliance with this instrument by the fund and the trustee.

Penalty: 10 penalty units.

(2) Despite subsection (1), if the trustee is the public trustee of a State or Territory, it may have the Auditor‑General of that State or Territory undertake the audit. (3) Despite subsection (1) and unless the Commissioner, by written notice, provides otherwise in relation to a particular *private ancillary fund, a fund that meets both of the following: (a) revenue of less than $1 million for a financial year; and (b) assets of less than $1 million for a financial year; may instead have its financial report, and compliance with this instrument, for that year reviewed rather than audited. (4) A reviewer must also be a registered company auditor (within the meaning of the Corporations Act 2001). However, an individual who is taken to be a registered company auditor under section 324BE of the Corporations Act 2001 is also taken to be a registered company auditor for the purpose of this subsection.

Note: Section 324BE has the effect of widening the class of individuals who can undertake a review to all members of a professional accounting body.

(5) The auditor or reviewer must undertake the audit or review, and provide the fund with a report, in accordance with the *auditing standards. (6) The audit or review must be finalised before the fund is required to give to the Commissioner the fund’s *income tax return for the relevant *financial year. (7) The trustee must make the report available to the Commissioner of Taxation on request, unless the report has already been given to the Commissioner of the Australian Charities and Not‑for‑profits Commission.

Penalty: 10 penalty units.