Audit Regulations (Amendment) 1995 No. 242
EXPLANATORY STATEMENT
Statutory Rules 1995 No. 242
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.
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 amend the Audit Regulations by revising Schedules 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 undertaken. It merely permits the AuditorGeneral to authorise an officer to sign a report on his or her behalf, thus relieving the AuditorGeneral 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) 1995 No. 242, issued under the authority of the Minister for Finance, amends the Audit Regulations made pursuant to the Audit Act 1901. This legislative amendment seeks to address the administrative burden on the Auditor-General by allowing the delegation of certain tasks, such as signing audit reports, to authorised officers. This does not diminish the Auditor-General's overall accountability for the audits but instead facilitates more efficient administration. The objective is to streamline the reporting process without compromising the integrity and responsibility inherent in the Auditor-General’s role. The changes update the lists of authorities, bodies, and companies subject to section 70BA, ensuring the regulations remain current and relevant to the evolving landscape of entities under Commonwealth oversight.
Scope and Application
The Audit Regulations (Amendment) 1995 No. 242 applies to the Auditor-General and the officers authorised to act on their behalf, within the context of the Audit Act 1901. These regulations specifically amend the Audit Regulations by updating the lists of authorities, bodies, and companies in Schedules 1 and 2, which are declared to be subject to section 70BA of the Act. This declaration allows the Auditor-General to authorise an officer to sign a report on their behalf, thereby reducing the professional workload associated with the office of the Auditor-General while maintaining their overall responsibility for the audits conducted. The amendments do not alter the fundamental duties and powers of the Auditor-General. The Act has a Commonwealth jurisdictional reach, as it pertains to the federal level of government in Australia. The application of the Act extends through subordinate instruments, specifically the Audit Regulations, which are updated to reflect changes in the entities subject to section 70BA. The changes in the regulations do not introduce any exclusions, exemptions, or thresholds, but rather streamline the process of reporting by allowing authorised officers to sign reports on behalf of the Auditor-General.
Key Provisions
The Audit Regulations (Amendment) 1995 No. 242 amend the existing Audit Regulations under the Audit Act 1901 (sections 70BA and 71). This amendment updates the lists of authorities, bodies, and companies declared subject to section 70BA, allowing the Auditor-General to delegate the signing of audit reports to authorised officers. Section 71 of the Act empowers the Governor-General to make regulations for carrying out the provisions of the Act, provided they are not inconsistent with the Act's provisions. Section 70BA specifies that the Regulations can declare an authority, body, or company in which the Commonwealth has a controlling interest to be subject to the section, thereby permitting the Auditor-General to authorise an officer to sign audit reports on their behalf.
The amendment imposes specific obligations on the Auditor-General and the authorised officers. The Auditor-General remains ultimately responsible for the conduct of the audits. However, under section 70BA, the Auditor-General can delegate the task of signing audit reports to authorised officers, easing some of the professional workload associated with the office. This delegation does not affect the Auditor-General's responsibility for the audits' integrity and accuracy. In circumstances that warrant personal oversight, the Auditor-General retains the authority to sign the reports personally.
Failure to comply with the requirements of the Audit Regulations, including the proper delegation of duties, could potentially lead to both civil and criminal consequences. However, the specific offences, penalties, or consequences for breach are not detailed within the explanatory statement of the Audit Regulations (Amendment) 1995 No. 242. The statement focuses primarily on the administrative updates to the lists of authorities, bodies, and companies subject to section 70BA and the delegation process for signing audit reports. It is important for those governed by these regulations to adhere to the requirements set out in the Act and the Regulations to avoid potential legal repercussions.