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Appendix C

Audit-related disclosure requirements of the Corporations Act and accounting standards

The principal audit-related disclosure requirements of the Corporations Act and accounting standards are:

  • paragraph 298(1)(c) of the Corporations Act, which requires a company, registered managed investment scheme or disclosing entity to include in its directors’ report for each financial year a copy of the auditor’s independence declaration under section 307C in relation to the audit for the financial year;
  • section 300 of the Corporations Act, which requires the following information to be included in the directors’ report of a listed company:
    • if a registered company auditor plays a significant role in the audit of a listed company for a financial year in reliance on a declaration made under section 342A13, subsection 300(11A) requires the report for the company to include details of the declaration;
    • in relation to each auditor:
      • details of the amounts paid or payable to the auditor for non-audit services provided, during the year, by the auditor (or by another person or firm on the auditor’s behalf);
      • a statement of whether the directors are satisfied that the provision of non-audit services during the year by the auditor (or by another person or firm on the auditor’s behalf) is compatible with the general standard of independence for auditors imposed by the Corporations Act;
      • a statement of the directors’ reasons for being satisfied that the provision of those non-audit services during the year by the auditor (or by another person or firm on the auditor’s behalf) did not compromise the auditor independence requirements of the Corporations Act;
  • subsection 306(2) of the Corporations Act, which provides that the directors’ report of a disclosing entity must include a copy of the auditor’s independence declaration under section 307C in relation to the audit or review for the half-year; and
  • paragraphs Aus 126.1 and Aus 126.2 of accounting standard AASB 101 Presentation of Financial Statements, which require an entity or economic entity to disclose in its financial report the remuneration of:
    • the auditor, showing separately amounts for audit and non-audit services (including, in the case of the latter, the nature and amount of each of the non-audit services provided by the auditor); and
    • a practice related to the auditor’s firm for non-audit services provided in relation to the entity or economic entity (including the nature and amount of each category of non-audit service).

13 Section 342A of the Corporations Act outlines the circumstances, and manner, in which ASIC may modify the auditor rotation requirements contained in section 324DA of the Act.

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Miscellaneous