Public and Private Companies

Audit Requirement

Certain types of entities must have their financial reports audited by a registered company auditor.

A company (other than a small proprietary company), registered scheme (managed investment scheme) or disclosing entity (a body that holds enhanced disclosure securities) must have its annual financial report audited and obtain an auditor’s report.

However a proprietary company may be exempt from having its financial report audited (see Regulatory Guide 115 and CO 98/1417 Audit Relief for Proprietary Companies) or may otherwise be eligible for audit relief.

A disclosing entity must have its interim financial report reviewed and obtain a registered company auditor’s review report.

Public Companies that are not disclosing entities or companies limited by guarantee

You must prepare annual financial reports in accordance with Chapter 2M of the Corporations Act 2001 (Corporations Act).

These financial reports must be:

audited
lodged with ASIC within four months of financial year end
sent to members by the earlier of four months after year end or 21 days before the next AGM.

Public Companies that are not disclosing entities

A public company that is not a disclosing entity is not required to comply with Part 2M.3 of the Corporations Act if all conditions of ASIC Corporations (Wholly-owned Companies) Instrument 2016/785 are met, and it is also not:

a borrowing corporation
the guarantor of such a borrower, or
a financial services licensee

and it:

is a wholly-owned entity
undertook a deed of cross guarantee with every other company in the closed group.
These companies do not have to prepare audited financial statements for lodgement with ASIC or for sending to members.

Public Companies that are not disclosing entities

a borrowing corporation
the guarantor of such a borrower, or
a financial services licensee

and it:

is a wholly-owned entity
undertook a deed of cross guarantee with every other company in the closed group.
These companies do not have to prepare audited financial statements for lodgement with ASIC or for sending to members.

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