ASIC has released an updated Regulatory Guide 34 Auditors' obligation: Reporting to ASIC (RG 34).
The updated RG 34 provides guidance on the general legislative obligations of auditors of companies and registered schemes to report suspected contraventions of the Corporations Act 2001 to ASIC as well as specific obligations in respect of AFS licences, and similar obligations under the National Credit Act, in respect of credit licences.
It also provides new examples of circumstances that may and may not require reporting to ASIC, and introduces guidance for auditors of credit licensee trust accounts.
Examples of suspected contraventions that are likely to be significant and require notification to ASIC include:
(a) insolvent trading;
(b) failure to comply with accounting standards;
(c) modified audit or review reports;
(d) fraud by officers or employees of the entity;
(e) related party transactions;
(f) composition of the board of directors;
(g) failure to keep books and records;
(h) non-lodgement of financial reports; and
(i) ongoing failures to comply with a compliance plan.
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Posted 3rd June 2013 by David Jacobson in Compliance, Corporations Act, Financial Services, Future of Financial Advice Reforms