Audit Act 1965

Overview

The Audit Act 1965, enacted by the Queen's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, addresses the need to update the Audit Act 1901–1964 in light of Australia’s transition to decimal currency. The Act introduces amendments to align the Audit Act with the new monetary system. By updating references from "pounds" to "dollars" and clarifying the valuation of coins until they are issued, the Act ensures that financial reporting and auditing processes accurately reflect the new currency. The policy objective is to maintain the integrity and consistency of financial records and audits in the context of the nation's monetary reform. The Act came into effect on 14 February 1966, providing a seamless transition for financial management and reporting under the new currency regime.

Scope and Application

The Audit Act 1965, as enacted, is a piece of Commonwealth legislation designed to amend the existing Audit Act 1901–1964 in response to the introduction of decimal currency in Australia. This Act applies to the Commonwealth of Australia and affects entities and individuals who interact with the Commonwealth's financial systems, including the Treasurer and those involved in the management and auditing of the Commonwealth's financial transactions. The amendments introduced by this Act affect the yearly statement for audit, the valuation of unissued coins, and the investment of moneys standing to credit of the Trust Fund. Notably, it specifies that until coins are issued under the relevant coinage or currency acts, their value will be considered based on the metal content. Additionally, it allows for the investment of Trust Fund moneys in government securities, bank deposits, or metal for coinage. The Act provides a clear update to the existing financial framework to accommodate the decimal currency system, ensuring that the financial records and audits remain accurate and relevant to the new monetary standards.

Key Provisions

The Audit Act 1965 introduces several amendments to the Audit Act 1901–1964, primarily to align the legislation with the introduction of decimal currency in Australia. The main operative sections of this Act include the alteration of the currency denomination in the yearly statement for audit (section 3) and the insertion of a new provision regarding the valuation of unissued coins (section 4). Additionally, section 5 of the Act updates the investment options for moneys standing to the credit of the Trust Fund. Section 3 of the Act amends section 50 of the Audit Act 1901–1964 by replacing the term "pound" with "dollar" in the sub-section that pertains to the yearly statement for audit. This change ensures that the financial statements reflect the new decimal currency system. Following this, section 4 inserts a new provision (section 50a) that stipulates the value of a coin, until it is officially issued, is to be determined by the value of the metal it is made from. This is a transitional measure to accommodate the shift to decimal currency. The obligations and requirements imposed by the Act on the relevant parties are primarily concerned with the accurate reflection of financial data in accordance with the new currency system. For instance, the yearly statement for audit must now be expressed in dollars rather than pounds, as specified in section 3. Additionally, section 50a places an obligation on the Treasurer to value unissued coins based on the metal content until such coins are officially issued. In terms of offences and penalties, the Act does not explicitly outline specific criminal or civil penalties for breaches of its provisions. However, the amendments made by the Act are integral to ensuring compliance with financial reporting standards and the accurate representation of monetary values in governmental accounts. Any failure to adhere to these updated requirements could potentially lead to discrepancies in financial reporting, which might have broader legal and financial repercussions.