Lodge online

Register for online access

How to lodge

Download paper forms

Search all forms

Search ASIC registers

Within: 

Search financial services/credit licensees and representatives, liquidators, auditors and more

Professional registers

--------------------------------------------------

More information

Lodge online

decrease text size increase text size print page

Resignation and removal of auditors of registered schemes or compliance plans



This information sheet explains the requirements of s331AC and 601HH of the Corporations Act 2001 (the Corporations Act), in relation to ceasing auditors of managed investment schemes and compliance plans.

For information about auditors of companies see Resignation of an auditor under the Corporations Act 2001 (INFO 65) and Removal of an auditor under the Corporations Act 2001 (INFO 62).

Resignation of an auditor of a registered scheme
Removal of an auditor of a registered scheme
Resignation and removal of an auditor of a compliance plan


Resignation of an auditor of a registered scheme



Regulatory Guide 136 Managed investments: Discretionary powers and closely related schemes (RG 136) states that we expect that an auditor’s resignation will take effect one month after they lodge their audit report with us unless exceptional circumstances exist (RG 136.40-RG 136.41).

Regulatory Guide 26 Resignation of auditors (RG 26) explains what may constitute exceptional circumstances.

To meet the timeframe specified in RG 136, an auditor intending to resign should apply to us for consent before lodging the audit report.


Process for resigning as auditor of registered scheme


Step 1. Auditor must lodge application for consent to their resignation with ASICComplete and lodge Form 5132 Application for consent from ASIC for resignation or removal of scheme auditor and include:
  • the application fee ($38);
  • a signed copy of a resolution made by the directors of the responsible entity appointing a replacement auditor to the scheme, subject to our consent to the resignation; and
  • confirmation from the proposed replacement auditor stating that they are prepared to accept the appointment as auditor of the scheme, subject to our consent to the resignation.
Step 2. ASIC considers the applicationIf we approve the application and grant consent, we will advise both the responsible entity and the auditor concerned in writing.

If we do not consent to the resignation, we will write to the auditor to tell them and the auditor will continue to hold office and the process ends here.
Step 3. If we consent to resignation auditor must give noticeThe auditor gives written notice of resignation to the responsible entity.
Step 4. Responsible entity must lodge forms notifying of cessation of former auditor and appointment of new auditor The responsible entity must lodge:


Removal of an auditor of a registered scheme


The responsible entity of a scheme can remove the auditor of the scheme from office if we consent.

If the auditor ceases to be capable of acting as an auditor because of Division 2 of Part 2M.4 of the Corporations Act, the responsible entity must remove the auditor—our consent is not required and the process involves only Step 3 below.


Process for removal of an auditor of registered scheme



Step 1. Responsible entity must lodge application for consent to auditor’s removal with ASICComplete and lodge Form 5132 Application for consent from ASIC for resignation or removal of scheme auditor and include:
  • the application fee ($38);
  • a signed copy of a resolution made by the directors of the responsible entity appointing a replacement auditor to the scheme, subject to our consent to the removal; and
  • confirmation from the proposed replacement auditor stating that they are prepared to accept the appointment as auditor of the scheme, subject to our consent to the removal.
Step 2. ASIC considers the applicationAs removals are not currently addressed in RG 136, we will generally grant consent where:
  • the responsible entity’s reasons are acceptable;
  • we have no concerns with the timing of the removal; and
  • there is no evidence of opinion-shopping, or the audit proving to be controversial.

If we approve the application and grant consent, we will advise the responsible entity in writing.

If we do not consent to the removal, we will write to the responsible entity to tell them and the auditor will continue to hold office and the process ends here.
Step 3. Responsible entity must lodge forms notifying of cessation of former auditor and appointment of new auditorThe responsible entity must lodge:


Resignation and removal of an auditor of a compliance plan


As no printed form exists for the resignation or removal of an auditor of a compliance plan, a written letter of application is required for our consent to the resignation or removal of an auditor of a compliance plan.

Resignation


RG 136 states that we expect that an auditor’s resignation will take effect one month after their audit report is lodged with us unless exceptional circumstances exist. Refer to RG 26 for guidance on what may constitute exceptional circumstances.

To meet the timeframe specified in RG 136, an auditor wishing to resign must apply in writing for our consent before lodging the compliance plan audit report.

The significance of an individual being appointed to audit a compliance plan, rather than an audit firm, must be considered when an audit appointment is to be rotated within a firm. Unless there are exceptional circumstances, the change of auditor resulting from such rotation is expected to occur one month after the audit report has been lodged.


Process for resignation of an auditor of a compliance plan



Step 1. Auditor must lodge written application for consent to auditor’s resignation with ASIC The application is in the form of a letter and must include:
  • the application fee ($38) per compliance plan;
  • the reason for the resignation;
  • details of the exceptional circumstances surrounding the resignation, if the resignation to take effect on a date other than one month after the next compliance plan audit report is lodged with us;
  • written confirmation from the proposed replacement auditor stating that they are prepared to accept the appointment as compliance plan auditor;
  • a signed copy of a directors' resolution (by the directors of the responsible entity) appointing a replacement auditor to the compliance plan, subject to our consent to the resignation; and
  • a signed statement by the auditor confirming the following:
    • All s601HG(4), s601HG(4A), or s601HG(4B) matters have been reported to us at the date of the application and any further matters which come to the attention of the auditor before their resignation will also be reported.
    • Other than stated in the annexure to the application, there are no disputes with the responsible entity connected with the auditor ceasing to hold office.
    • Other than stated in the annexure to the application, in the opinion of the auditor, there are no circumstances connected with the auditor ceasing to hold office that should be brought to our attention.
Step 2. ASIC considers the applicationIf we approve the application and grant consent, we will advise both the responsible entity and the auditor concerned in writing.If we don’t grant consent, the auditor will continue to hold office and the process ends here.
Step 3. Responsible entity must lodge written request for us to alter record of scheme’s registration The responsible entity must lodge a written request for us to alter the record of the scheme’s registration to show the name of the new auditor of the compliance plan. This request must be lodged as soon as practicable after the change, together with a $72 fee for each compliance plan.



Removal


The responsible entity can remove the auditor of a compliance plan if we consent.

If the auditor becomes ineligible under s601HG(2) of the Corporations Act to continue as auditor of the compliance plan, the responsible entity must remove them—our consent is not required and the process involves only Step 3.


Process for removal of an auditor of a compliance plan



Step 1. Responsible entity must lodge written application for consent to auditor’s removal with ASICThe application is in the form of a letter and must include:
  • an application fee of $38 per compliance plan;
  • the reason for the removal;
  • details of the current status of the audit;
  • written confirmation from the proposed replacement auditor stating that they are prepared to accept the appointment as compliance plan auditor; and
  • a signed statement by the directors of the responsible entity confirming the following:
    • Other than stated in the annexure to the application, there are no disputes with the auditor connected with their removal from office.
    • Other than stated in the annexure to the application, there are no circumstances connected with the auditor ceasing to hold office that should be brought to our attention.
Step 2. ASIC considers the applicationIf we approve the application and grant consent, we will advise the responsible entity in writing.

We will generally agree providing that:
  • the responsible entity’s reasons are acceptable;
  • we have no concerns with the timing of the removal; and
  • there is no evidence of opinion–shopping or the audit proving to be controversial.If we don’t grant consent, the auditor will continue to hold office and the process ends here.
Step 3. Responsible entity must lodge written request for us to alter record of scheme’s registration The responsible entity must lodge a written request for us to alter the record of the scheme’s registration to show the name of the new auditor of the compliance plan.

This request must be lodged as soon as practicable after the change, together with a $74 fee for each compliance plan.


More information about auditors

This is Information Sheet 64 (INFO 64). Information sheets provide concise guidance on a specific process or compliance issue or an overview of detailed guidance.



decrease text size increase text size print page