Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2021

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2021 is a notifiable instrument that appoints Michelle Shafizadeh as a part-time member of the Auditing and Assurance Standards Board. Enacted by the Financial Reporting Council under subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, the instrument aims to fill a gap by ensuring the presence of qualified individuals who can contribute to the development and maintenance of auditing and assurance standards in Australia. The policy objective is to uphold the integrity and quality of financial reporting, thereby protecting the interests of investors and the broader public. This appointment was made effective from 1 July 2021 until 31 December 2023, highlighting the Council's commitment to maintaining robust standards in the auditing profession.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2021 targets the appointment of a part-time member to the Auditing and Assurance Standards Board, thereby applying to the individual appointed, Michelle Shafizadeh. This appointment is made under the authority of the Australian Securities and Investments Commission Act 2001, which governs the activities of the Financial Reporting Council in relation to the appointment of board members. The legislation specifies that Michelle Shafizadeh's role will commence on 1 July 2021 and end on 31 December 2023, ensuring compliance with the qualifications stipulated in subsection 236F(4) of the Act. The appointment extends across the Commonwealth of Australia, reflecting the national reach of the Act in regulating financial reporting standards. The legislation does not specify any exclusions or exemptions for this particular appointment, and it is enacted as a notifiable instrument under the legislative instruments act 2003.

Key Provisions

The key operative sections of the legislation, Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2021, primarily involve the appointment of a part-time member to the Auditing and Assurance Standards Board (AUASB). Under section 1, the Financial Reporting Council (FRC) is tasked with making the appointment, ensuring the appointee meets the qualifications specified in subsection 236F(4) of the Australian Securities and Investments Commission Act 2001 (the Act). Michelle Shafizadeh has been appointed to this role from 1 July 2021 until 31 December 2023, as detailed in section 2 of the instrument. The obligations and requirements imposed by this legislation primarily revolve around the FRC’s responsibility to ensure that the appointee is qualified according to the criteria outlined in the Act. The FRC must verify Michelle Shafizadeh's qualifications and suitability for the role, reflecting the importance of maintaining high standards in the auditing and assurance sector. Furthermore, the AUASB, with Michelle Shafizadeh as a part-time member, must continue to perform its functions in accordance with the Act, which includes developing and maintaining auditing and assurance standards that promote transparency, accountability, and reliability in financial reporting. The legislation does not explicitly state any offences or penalties for breaches within the instrument itself. However, the broader framework under the Australian Securities and Investments Commission Act 2001 provides for various civil and criminal penalties. These could include fines and imprisonment for serious breaches of the Act, particularly if they relate to the improper appointment or conduct of AUASB members. The exact penalties would depend on the nature and severity of the breach, as defined under the overarching legislation. In conclusion, the Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointment (No. 1) 2021 outlines the appointment of Michelle Shafizadeh to the AUASB, highlighting the need for qualified members to uphold auditing standards. The FRC is tasked with ensuring the appointee meets the required qualifications, and while specific penalties for breaches are not detailed in this instrument, they are available under the Australian Securities and Investments Commission Act 2001, providing a robust framework to address any non-compliance.