Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This Division applies to an audit deficiency (the identified audit deficiency ) that:
(a) is identified by ASIC in circumstances described in subsection (2) in relation to an audit conducted by an Australian auditor; and
(b) consists of any of the following:
(i) a failure by the auditor to comply with the auditing standards;
(ii) a failure by the auditor to comply with the auditor independence requirements in the Corporations Act;
(iii) a failure by the auditor to comply with any applicable code of professional conduct;
(iv) a failure by the auditor to comply with the provisions of the Corporations Act dealing with the conduct of audits; and
(c) ASIC reasonably believes:
(i) indicates a significant weakness in the Australian auditor's quality control system; or
(ii) indicates a significant weakness in the conduct of the audit and may be detrimental to the overall quality of the audit.
(2) For the purposes of paragraph (1)(a), the circumstances are that the identified audit deficiency is identified by ASIC while exercising its powers or functions:
(a) in relation to audit - related matters ( Corporations Act audit requirements ) under Chapter 2M, Chapter 5C, Part 7.8, Part 9.2 or Part 9.2A of the Corporations Act or under other provisions of that Act that relate to that Chapter or that Part; or
(b) for the purposes of ascertaining compliance with Corporations Act audit requirements; or
(c) in relation to:
(i) an alleged or suspected contravention of Corporations Act audit requirements; or
(ii) an alleged or suspected contravention of a law of the Commonwealth, or of a State or Territory in this jurisdiction, being a contravention that relates to an audit matter and that either concerns the management or affairs of a body corporate or involves fraud or dishonesty and relates to a body corporate; or
(d) for the purposes of an investigation under Division 1 of this Part relating to a contravention referred to in paragraph (c).