Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if the Regulator reasonably suspects that an entity that is a reporting entity or a reporting nominee has contravened a provision of this Act.
(2) The Regulator may, by written notice given to the entity, require the entity:
(a) to appoint as an auditor:
(i) a person nominated by the entity and approved, in writing, by the Regulator; or
(ii) if the Regulator does not approve a person nominated by the entity--another person approved, in writing, by the Regulator; and
(b) to arrange for the auditor to carry out an audit of whichever of the following is specified in the notice:
(i) the entity's compliance with this Act;
(ii) one or more specified aspects of the entity's compliance with this Act; and
(c) to give the Regulator a written report setting out the results of the audit within:
(i) the period specified in the notice; or
(ii) if the Regulator allows a longer period--that longer period.
(3) The notice must specify:
(a) requirements relating to the qualifications and independence of the auditor to be appointed under paragraph (2)(a); and
(b) the matters to be covered by the audit; and
(c) the form and content of the report.
(4) The entity must comply with the notice.
(5) The entity must provide the auditor, and any persons assisting the auditor, with all reasonable facilities and assistance necessary for the effective exercise of the auditor's duties under this section.
Auditor's fees and expenses
(6) The reasonable fees and expenses of the auditor for preparing the audit report are payable by the entity.
Civil penalties
(7) An entity is liable to a civil penalty if:
(a) the entity is subject to a requirement under subsection (4); and
(b) the entity fails to comply with the requirement; and
(c) the entity is not a volunteering entity.
Civil penalty: 60 penalty units.
(8) An entity is liable to a civil penalty if:
(a) the entity is subject to a requirement under subsection (5); and
(b) the entity fails to comply with the requirement; and
(c) the entity is not a volunteering entity.
Civil penalty: 200 penalty units.
(9) For the purposes of subsection (8), the reference in paragraph 82(5)(a) of the Regulatory Powers Act to 5 times the pecuniary penalty specified for the civil penalty provision has effect as if it were a reference to 0.2% of the total income for the person for the income year in which the contravention occurred.
Note: This subsection modifies the maximum pecuniary penalty that a body corporate can be ordered to pay for a contravention of subsection (8).