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16-210MR ASIC simplifies registration of company auditors
ASIC today released revised Regulatory Guide 180 Auditor Registration (RG 180) which simplifies and improves the registration process for prospective auditors.
ASIC Commissioner John Price said ‘The changes to the registration process will ensure appropriate standards for new company auditors while reducing red tape.’
The changes to RG 180 concern:
- approval of a new competency standard for satisfying practical experience requirements
- reducing the paperwork and information required for satisfying an hours-based experience test
- updating the professional indemnity insurance requirements for authorised audit companies and new registered company auditors.
The new competency standard simplifies the competency requirements, takes into account new auditing requirements, and adopts a principles-based approach. The new standard was developed jointly by the three largest accounting bodies.
The revised RG 180 streamlines the application forms and supporting documents required to be lodged with ASIC under the hours-based test. This should reduce the time and effort required to make an application.
We have also updated our professional indemnity insurance requirements to remain consistent with the limitation of liability schemes for members of two professional accounting bodies that were revised in 2014 under the Professional Standards Council schemes. While the changes come into effect immediately, some applicants may have commenced preparing or lodged an application under the previous guidelines. ASIC will continue to accept applications prepared under the previous guidelines until 30 June 2017.
To audit companies and other entities under the Corporations Act a person must be a registered company auditor or authorised audit Company.
The revised 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.
To be registered as a registered company auditor, an applicant must demonstrate that they have the required qualifications and practical experience, and meet a fit and proper person test. The practical experience requirement can be met by satisfying an hours-based test or meeting the requirements of an ASIC approved audit competency standard.