Miss
2011-2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
CORPORATIONS LEGISLATION AMENDMENT (AUDIT ENHANCEMENT) BILL 2012
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Parliamentary Secretary to the Treasurer, the Hon David Bradbury MP)
Table of contents
Glossary ................................................................................................. 1 General outline and financial impact....................................................... 3 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Auditor rotation requirements .......................................17 Annual transparency reports ........................................27 Auditor independence functions ...................................35 Audit deficiency notifications and reports .....................41 Communications with corporations, registered schemes and disclosing entities ..................................49 Regulation impact statement ........................................55 Statement of Compatibility with Human Rights ............95
Chapter 6 Chapter 7
Index......................................................................................................97
Glossary
The following abbreviations and acronyms are used throughout this explanatory memorandum.
Abbreviation AAT AICD ADI APRA ASIC ASIC Act CLERP 9 CLERP 9 Act Definition Administrative Appeals Tribunal Australian Institute of Company Directors Authorised deposit-taking institution Australian Prudential Regulation Authority Australian Securities and Investments Commission Australian Securities and Investments Commission Act 2001 Ninth Phase of the Corporate Law Economic Reform Program Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 Corporations Act 2001 Canadian Public Accountability Board Companies Auditors and Liquidators Disciplinary Board European Commission European Union Financial Reporting Council Group
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
CORPORATIONS LEGISLATION AMENDMENT (AUDIT ENHANCEMENT) BILL 2012
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Parliamentary Secretary to the Treasurer, the Hon David Bradbury MP)
Table of contents
Glossary ................................................................................................. 1 General outline and financial impact....................................................... 3 Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Auditor rotation requirements .......................................17 Annual transparency reports ........................................27 Auditor independence functions ...................................35 Audit deficiency notifications and reports .....................41 Communications with corporations, registered schemes and disclosing entities ..................................49 Regulation impact statement ........................................55 Statement of Compatibility with Human Rights ............95
Chapter 6 Chapter 7
Index......................................................................................................97
Glossary
The following abbreviations and acronyms are used throughout this explanatory memorandum.
Abbreviation AAT AICD ADI APRA ASIC ASIC Act CLERP 9 CLERP 9 Act Definition Administrative Appeals Tribunal Australian Institute of Company Directors Authorised deposit-taking institution Australian Prudential Regulation Authority Australian Securities and Investments Commission Australian Securities and Investments Commission Act 2001 Ninth Phase of the Corporate Law Economic Reform Program Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act 2004 Corporations Act 2001 Canadian Public Accountability Board Companies Auditors and Liquidators Disciplinary Board European Commission European Union Financial Reporting Council Group