The Australian Securities and Investment Commission (ASIC)
recently announced that it will loosen the constraints on the
process for changing an auditor.
ASIC to accept resignation of auditors at any time if
conditions are met
The
Corporations Act 2001 (Cth) ("the Act")
regulates how a public company may change its external auditor.
Section 329 of the Act provides that a company required to have
an auditor under the Act must obtain consent from ASIC in order for
that auditor to resign.
On 18 June 2015, ASIC made an announcement,
ASIC Reduces red tape for changes of auditors, that it
will now consent to the resignation of an auditor at any time
if:
- there are no concerns in connection with the resignation, such
as a concern where there is a disagreement between management and
the auditor over an accounting treatment; and;
