Audit Regulations (Amendment) 1993 No. 360
EXPLANATORY STATEMENT
Statutory Rules 1993 No. 360
Issued by the Authority of the Minister for Finance
Audit Act 1901
Audit Regulations (Amendment)
Subsection 71(1) of the Audit Act 1901 (the Act) provides that the Governor-General may make regulations (not inconsistent with the provisions of the Act) for carrying out the provisions of the Act. The attached Statutory Rules amended the Audit Regulations made pursuant to section 71.
Regulations 2, 2A, 3 and Schedule 1
Section 63C of the Act provided that the Regulations could declare a body corporate which was incorporated for a public purpose by an Ordinance of the Australian Capital Territory, to be a body to which either Division 2 or 3 of Part XI of the Act applied. Division 2 of Part XI sets out the standard provisions relating to banking, the keeping of accounts, reporting and audit which apply to public authorities required to keep accounts in accordance with commercial practice; Division 3 sets out the appropriate standard provisions to apply to authorities which are not required to maintain their accounts in accordance with commercial practice. On ACT self-government, provisions relating to those bodies became subject to laws made by the Legislative Assembly of the ACT. As a consequence section 63C was amended by the Audit Amendment Act 1989 to remove the reference to Ordinances of the ACT.
Accordingly, the definition of "Division" in regulation 2, regulation 2A and Schedule 1, which declared those ACT authorities to which Division 2 or 3 of Part XI applied, became redundant and have been repealed. Consequential amendments have been made also to regulation 3 and Schedules 2 and 3.
Schedules 2 and 3
Section 70BA of the Act provides that the Regulations may declare an authority, a body or a company in which the Commonwealth has a controlling interest, to be subject to the section. The effect of such a declaration is that, where the Auditor-General is required by the Act or other legislation to submit a report on an authority, body or company, the Auditor-General may authorise an officer to sign that report on the Auditor-General's behalf and when the report is submitted, it shall be taken to have been submitted by the Auditor-General.
The regulations amended the Audit Regulations by revising Schedules 2 and 3 (now renumbered as 1 and 2) to update the current lists of authorities, bodies and companies which are declared to be subject to section 70BA.
The declaration of these authorities, bodies and companies does not affect the Auditor-General's overall responsibility for the conduct of the audits under-taken. It merely permits the Auditor-General to authorise an officer to sign a report on his or her behalf, thus relieving the Auditor-General of some of the professional workload associated with that office. The Auditor-General will sign a report personally should circumstances arise which warrant him or her doing so.
Overview
The Audit Regulations (Amendment) 1993 No. 360 was issued under the authority of the Minister for Finance to amend the Audit Regulations made pursuant to section 71 of the Audit Act 1901. This amendment was necessary to address the redundancy of certain regulatory provisions following the granting of self-government to the Australian Capital Territory. The Act was enacted by the Parliament of Australia and the policy objective of the regulation is to ensure that the Auditor-General’s responsibilities are efficiently managed while maintaining the integrity and authority of audit reports. The regulations repealed redundant references to ACT authorities and updated the lists of authorities, bodies and companies subject to specific audit provisions, thereby streamlining the regulatory framework to reflect current legislative realities.
Scope and Application
The Audit Regulations (Amendment) 1993 No. 360, issued under the authority of the Minister for Finance, amends the Audit Regulations made pursuant to the Audit Act 1901. The amendments primarily address the application of the Act to certain bodies and entities within the Australian Capital Territory (ACT) and update the lists of authorities, bodies, and companies subject to specific audit provisions. With the ACT's transition to self-government, the regulations remove references to ACT Ordinances and repeal redundant definitions concerning ACT authorities subject to the Act's provisions. Additionally, the amendments revise Schedules 2 and 3, now renumbered as 1 and 2, to reflect current authorities, bodies, and companies subject to section 70BA of the Act, which allows the Auditor-General to authorise an officer to sign a report on their behalf, thereby easing some professional workload. This amendment does not alter the Auditor-General’s overall responsibility for the audits conducted but provides a procedural flexibility in report submissions.
Key Provisions
The main operative sections of the Audit Regulations (Amendment) 1993 No. 360 pertain to the updating and amendment of existing regulations under the Audit Act 1901. Regulation 2, 2A, and Schedule 1 have been repealed as they declared bodies corporate incorporated for a public purpose by an Ordinance of the Australian Capital Territory, which became subject to ACT laws post self-government. The schedules related to Divisions 2 and 3 of Part XI of the Act, which specified the standard provisions for audit and accounting practices for certain authorities, were thus rendered redundant. Regulation 3 and Schedules 2 and 3 have also been amended to reflect these changes.
The Act imposes certain obligations and requirements on the entities it governs. For instance, the Auditor-General retains ultimate responsibility for the audits conducted, but has the authority to delegate the signing of reports to authorised officers. This delegation does not affect the Auditor-General's overall accountability and ensures that the workload is managed efficiently. Additionally, the Auditor-General retains the discretion to sign reports personally if circumstances demand it, ensuring that the quality and integrity of the audit process are maintained.
In terms of offences, penalties, or civil/criminal consequences, the regulations themselves do not explicitly detail specific penalties for breaches. However, under the Audit Act 1901, the Auditor-General has the authority to take action against entities that fail to comply with audit requirements, which could include financial penalties, legal proceedings, or other administrative actions. The maximum penalties for such breaches would depend on the nature of the offence and the specific provisions of the Audit Act and any related legislation.
The amendments to the regulations ensure that the Audit Act continues to be applicable to the appropriate authorities, bodies, and companies, maintaining the integrity of the audit process while providing flexibility in the reporting process. The consequential amendments to regulation 3 and Schedules 2 and 3 maintain the alignment of the regulations with the current legislative framework, ensuring that the Auditor-General's role is clearly defined and that the audit process is efficiently managed.