Section 324BD — Corporations Act 2001 (Cth)

(1) An individual who is not a registered company auditor may be appointed as auditor of a proprietary company if:

(a) ASIC is satisfied that it is impracticable for a proprietary company to obtain the services of:

(i) an individual who could be appointed as auditor consistently with section 324BA; or

(ii) a firm that could be appointed as auditor consistently with section 324BB; or

(iii) a company that could be appointed consistently with section 324BC;

because of the place where the company carries on business; and

(b) ASIC is satisfied that the individual is suitably qualified or experienced; and

(c) ASIC approves the individual for the purposes of this Act in relation to the audit of the company’s financial reports.

The appointment is subject to such terms and conditions as are specified in the approval under paragraph (c).

(2) If an individual is appointed in accordance with subsection (1):

(a) the individual is taken to be a registered company auditor in relation to the auditing of any of the company’s financial reports; and

(b) the provisions of this Act apply, with the necessary modifications, in relation to the individual accordingly.

Paragraph (a) has effect subject to the terms and conditions of the approval under subsection (1).

(3) If an individual approved by ASIC under subsection (1) is acting as auditor of a company, ASIC may at any time, by notice in writing given to the company:

(a) amend, revoke or vary the terms and conditions of its approval; or

(b) terminate the appointment of that individual as auditor of the company.

(4) A notice under subsection (3) terminating the appointment of an individual as auditor of a company takes effect as if, on the date on which the notice is received by the company, the company had received from the individual notice of the individual’s resignation as auditor taking effect from that date.

Related sections

• s 324BA — Registration requirements for appointment of individual as auditor
• s 324BB — Registration requirements for appointment of firm as auditor
• s 324BC — Registration requirements for appointment of company as auditor
• s 324BE — Exception from registration requirement—reviewing financial reports of companies limited by guarantee
• s 324BF — Eligibility requirements for auditors of registrable superannuation entities
• s 324CA — General requirement for auditor independence—auditors

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