Audit and review requirements for Australian Entities
The following are entities that require an audit to be undertaken
Trust Accounts
All Trust Accounts are to be audited – Solicitors, Real Estate Agents, Accountants
State legislation (Incorporated Associations)
Queensland – Associations Incorporations Act 1981 and Regulations 1999
Entity type |
Financial Report requirement |
Audit / Review requirement |
Auditor / Reviewer conditions |
Other |
Level 1 (either current assets >$100,000 or revenue >$100,000) |
Must prepare financial statement as defined in the Act s59(2)(a) |
Audit required s59(2)(b)(i) |
Audit must be performed by auditor (RCA) or accountant (member of the accounting bodies entitled to use their respective designations). s58 s59(2)(b)(i) |
As an RCA, an auditor must have adequate insurance. Members of the accounting bodies are subject to the relevant bodies requirements in relation to CPP |
Level 2 (either current assets > $20,001 <$100,000 or or revenue > $20,001 < $100,000) |
Must prepare financial statement as defined in the Act s59(2)(a) |
Audit required if required under Collections Act 1966, Gaming Machine Act 1991 or any other law s59(2)(b)(ii) |
If audit required, auditor must be RCA, accountant as above or approved person. s58 s59(2)(b)(ii) |
As an RCA, an auditor must have adequate insurance. Members of the accounting bodies are subject to the relevant bodies requirements in relation to CPP requirements and insurance requirements of CPP holders |
Level 3 (either current assets >$100,000 or revenue >$100,000) |
Must prepare financial statement as defined in the Act s59(2)(a) |
Audit not required unless specified under Collections Act 1966, Gaming Machine Act 1991 or any other law |
If audit required, auditor must be RCA, accountant as above or approved person s58 s59(2)(b)(ii) |
Audit required if specified under Collections Act 1966, Gaming Machine Act 1991 or any other law. As an RCA, an auditor must have adequate insurance |
Federal legislation
Corporations Act1 – Public interest entity
Entity type |
Financial Report requirement |
Audit / Review requirement |
Auditor / Reviewer conditions |
Other |
– Disclosing entity – Public company – Registered Scheme |
Must prepare financial reports (s292(1)) |
Must be audited (s301(1)) |
Auditor must be an Registered Company Auditor (RCA) (s324BA) |
To do an audit under Corporations Act, the auditor must have adequate insurance Reg 9.2.08 |
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Corporations Act1 – Proprietary Company
Entity type |
Financial Report requirement |
Audit / Review requirement |
Auditor / Reviewer conditions |
Other |
Large2 |
Must prepare financial reports (s292(1)) |
Must be audited unless ASIC provides exemption (s301(1)) |
Auditor must be RCA unless ASIC approves otherwise (s324BD) |
To do an audit under Corporations Act, the auditor must have adequate insurance Reg 9.2.08 |
Small3 |
Financial report only if directed (s292(2)) |
Audit only if required by the director/ASIC direction (s301(2)) |
If audited, the auditor must be RCA unless ASIC approves otherwise (s324BD) |
To do an audit under Corporations Act, the auditor must have adequate insurance Reg 9.2.08 |
Corporations Act1 – Company Limited by Guarantee
Entity type |
Financial Report requirement |
Audit / Review requirement |
Auditor / Reviewer conditions |
Other |
Revenue over $1m |
Must prepare financial reports (s292(1)) |
Must be audited (s301(1)) |
Auditor must be RCA (s324BA) |
To do an audit under Corporations Act, the auditor must have adequate insurance Reg 9.2.08 |
Revenue under $1m but over $250,000 |
Must prepare financial report (s292(1)) |
Audit only if requested If not audit, must have review (s301(3)) |
Auditor must be RCA Reviewer may CA (or member of other two accounting bodies) with CPP (s324BE) |
To do an audit under Corporations Act, the auditor must have adequate insurance Reg 9.2.08. Members of the accounting bodies are subject to the relevant bodies requirements in relation to insurance held by CPP holders |
Revenue under $250,000 |
No need for financial report unless directed by members or ASIC (s292(3)) |
No audit or review required unless directed |
If audited or reviewed, the auditor must be RCA Reviewer may CA (or member of other two accounting bodies) with CPP (s324BE) |
To do an audit under Corporations Act, the auditor must have adequate insurance Reg 9.2.08. Members of the accounting bodies are subject to the relevant bodies requirements in relation to insurance held by CPP holders |
Charities and NFP
Entity type |
Financial Report requirement |
Audit / Review requirement |
Auditor / Reviewer conditions |
Other |
Revenue over $1m |
Must prepare financial reports5 s60-10 |
Must be audited s60-25 |
Auditor must be RCA s60-30 |
As an RCA the auditor must have adequate insurance under the requirements of the Corps Act Reg 9.2.08 |
Revenue under $1m but over $250,000 |
Must prepare financial report5 s60-10 |
May be audited or reviewed s60-20 |
Auditor must be RCA Reviewer may be CA (or member of other 2 accounting bodies) S60-30 |
As an RCA the auditor must have adequate insurance under the requirements of the Corps Act Reg 9.2.08 |
Revenue under $250,000 |
No need for financial report s60-10 |
No audit required |
N/A |
N/A |
SIS6 Act
Entity type |
Financial Report requirement |
Audit / Review requirement |
Auditor / Reviewer conditions |
Other |
Superannuation Fund |
Must prepare financial reports s35B |
Must be audited s35C |
An approved auditor is an RCA or an Auditor General (or delegate of an A-G) Reg 1.0.4 |
N/A |
SMSF |
Must prepare financial reports s35B |
Must be audited s35C |
Auditor must be registered SMSF auditor s10(1) |
N/A |
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