Corporations Amendment Regulation 2012 (No. 5) has been registered giving more details of the requirements under the Corporations Legislation Amendment (Audit Enhancement) Act 2012 (the Audit Enhancement Act).
The Audit Enhancement Act inserts Part 2M.4A into the Corporations Act. Part 2M.4A provides that an auditor must publish an annual transparency report if, during a transparency reporting year, they conduct audits of 10 or more bodies of any of the following kinds: listed companies, listed registered schemes; authorised deposit‑taking institutions; and insurance companies.
The Regulation specifies that an annual transparency report must contain (where relevant):
- information about the auditor’s legal structure and ownership;
- where the auditor belongs to a network, information about the network and the legal and structural arrangements in the network;
- information about the auditor’s governance structure;
- information about the internal quality control system of the auditor;
- details of when the last reviews of the auditor conducted by an authorised body took place;
- the names of entities of audited;
- information about the auditor’s independence practices;
- the auditor’s continuing professional development policy;
- financial information for the auditor regarding their audit and non‑audit revenue; and
- information regarding the basis of remuneration of an auditor’s partners or directors.
