ASIC Revises Guidelines For Registration Of Company Auditors – Australian Securities & Investments Commission

Monday 29 October 2007 LAWFUEL – Australia & New Zealand Law News – IR 07-47SIMPLER AUDITOR REGISTRATION The Australian Securities and Investments Commission (ASIC) today provided revised guidance for individuals and companies seeking registration as a company auditor or an authorised audit company.

‘To simplify the registration process for prospective auditors, we have located all our guidance about registration in the one document – Regulatory Guide 180 Auditor registration’, Mr John Price, Acting Executive Director, Regulation said. ‘We have included guidance about how we process applications for registration and what supporting documents need to be lodged with us.

We have tried to make it easier for applicants by clarifying the information we need to make a decision, which should speed up the registration process.’ ‘We have also amended the online registration system to better support the registration process. Individuals and companies can now apply for registration as a company auditor or an authorised audit company, submit changes to their registered details, and submit their annual statements online’, Mr Price said.

‘These changes are part of ASIC’s broader commitment to providing businesses with better access to ASIC, including our systems, and minimising compliance costs’, Mr Price said. While the changes come into effect immediately, ASIC accepts that some applicants may have lodged an application that has not yet been decided, or may have completed an application but have not lodged it, on the basis of the previous guidelines. ASIC will process the application under the previous guidelines for applicants who have: (a) lodged an application but the application has not yet been decided; or (b) completed and signed their application prior to the changes but have not yet lodged the application. However, ASIC expects applicants who are only beginning to prepare their application to take into account the guidance in [RG 180] when preparing their application and supporting ‘proof’ documents. Details regarding [RG 180] are included in the attachment to this information release. A copy of [RG 180] is available from the ASIC website, For further information contact: John Price Acting Executive Director, Regulation Telephone: 03 9280 3639 Mobile: 0403 138 537 Danielle Huck ASIC Media Unit Telephone: 03 9280 3407 Mobile: 0417 540 769

Attachment to Information Release 07-47 Regulatory Guide 180: Auditor registration [RG 180] sets out our approach to the registration of an individual as a registered company auditor or a company as an authorised audit company. Applications for auditor registration may be made online via our website at The online application will take you through the information that you will need to enter, and issue you with an invoice and a copy of the application. A paper copy of the application must be signed and forwarded to ASIC with your original documents. Applications may also be made by completing Form 903AA (individual auditors) or Form 903AB (authorised audit companies). [RG 180] specifies the evidence that must be provided to satisfy us that an individual applicant meets the statutory requirements for registration as a registered company auditor.

The applicant must provide evidence to establish that s/he: • has completed the educational requirements specified in s1280(2A) of the Corporations Act or has equivalent qualifications and experience; • meets the prescribed practical experience requirements set out in regulations or an approved competency standard; and • is capable of performing the duties of an auditor and is otherwise a fit and proper person. ASIC cannot register an authorised audit company unless the company is owned and controlled by registered company auditors, the company has adequate professional indemnity insurance, and the company is not in external administration. [RG 180] sets out what we consider to be adequate professional indemnity insurance and the evidence we require before registering a company as an authorised audit company.

Both registered company auditors and authorised audit companies must lodge an annual statement with ASIC giving details of their auditing activity for the previous year. ASIC provides guidance on how to provide this information. [RG 180] also sets out the process we will follow in assessing an application for approval of a competency standard. of 2

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