Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If APRA is of the opinion that an approved auditor:
(a) has failed, whether within or outside Australia, to carry out or perform adequately and properly:
(i) the duties of an auditor under this Act or the regulations; or
(ii) any duties required by a law of the Commonwealth, a State or a Territory to be carried out or performed by an auditor; or
(iii) any functions that an auditor is entitled to perform in relation to this Act or the regulations or the Financial Sector (Collection of Data) Act 2001 ; or
(b) is otherwise not a fit and proper person to be an approved auditor for the purposes of this Act;
APRA may refer the details of the matter to the persons specified in subsection (2).
Note: Persons to whom APRA refers the details of the matter are subject to secrecy obligations under section 56 of the Australian Prudential Regulation Authority Act 1998 . In particular, see paragraph (c) of the definition of officer in subsection 56(1), and subsections 56(2), (9) and (10), of that Act.
(2) The persons specified in relation to an approved auditor for the purposes of subsection (1) are those members of the auditor's professional association whom APRA believes will be involved:
(a) in deciding whether the professional association should take any disciplinary or other action against the auditor in respect of the matter referred; or
(b) in taking that action.
(3) The power of APRA under subsection (1) may be exercised whether or not an order disqualifying the auditor has been made under section 67.
(4) If, under this section, APRA refers details of a matter involving an approved auditor, APRA must, as soon as practicable but, in any event, not later than 7 days after the referral, by notice in writing given to the auditor, inform the auditor:
(a) of the fact that a matter has been referred under subsection (1); and
(b) of the nature of the matter so referred.