Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointments (No. 1) 2023

Overview

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointments (No. 1) 2023 was enacted on 7 December 2023. This notifiable instrument was introduced to address the need for qualified part-time members on the Auditing and Assurance Standards Board (AASB). The Financial Reporting Council, acting under subsection 236F(2) of the Australian Securities and Investments Commission Act 2001, appointed Julie Crisp, Noel Harding, and Michelle Shafizadeh to the AASB, ensuring these appointments align with the qualifications outlined in subsection 236F(4) of the same Act. The policy objective of this appointment is to ensure that the AASB has the necessary expertise and diversity of experience to effectively oversee and develop auditing and assurance standards, thereby enhancing the integrity and transparency of financial reporting in Australia.

Scope and Application

The Australian Securities and Investments Commission (Auditing and Assurance Standards Board—Part-time Member) Appointments (No. 1) 2023 applies to the appointment of qualified individuals to part-time positions on the Auditing and Assurance Standards Board (AASB) as per subsection 236F(2) of the Australian Securities and Investments Commission Act 2001. This instrument is issued under the authority of the Financial Reporting Council, which ensures that each appointee meets the qualifications outlined in subsection 236F(4) of the Act. Specifically, Julie Crisp, Noel Harding, and Michelle Shafizadeh have been appointed to the AASB for the period beginning on 1 January 2024 and ending on 30 June 2026. The appointments are subject to the Commonwealth jurisdiction, impacting the AASB's role in setting auditing and assurance standards within Australia. This notifiable instrument does not specify exclusions, exemptions, or thresholds, but it implicitly relies on the criteria and qualifications set out in the parent Act for its application.

Key Provisions

The main operative sections of this notifiable instrument (F2023N00605) are those which detail the appointments of Julie Crisp, Noel Harding, and Michelle Shafizadeh as part-time members of the Auditing and Assurance Standards Board (AASB) from 1 January 2024 until 30 June 2026. Under section 2 of the instrument, the Financial Reporting Council (FRC) makes these appointments in accordance with subsection 236F(2) of the Australian Securities and Investments Commission Act 2001 (Cth). The instrument is effective from the date it is made, 7 December 2023, and Andrew Mills, the Chair of the FRC, signs it on behalf of the Council. The FRC imposes on itself and the appointed members several obligations under this notifiable instrument. The FRC must ensure that the appointees are qualified as required by subsection 236F(4) of the Australian Securities and Investments Commission Act 2001 (Cth), which typically includes qualifications in accounting or auditing, relevant professional experience, and an understanding of the financial reporting environment in Australia. The FRC also has a responsibility to manage these appointments effectively, ensuring that the part-time members can meet their duties without conflicts of interest or other impediments. Failure to adhere to the requirements set forth in this instrument could lead to various consequences, although specific offences, penalties, or consequences are not detailed in the text itself. However, under the broader legislative framework, breaches of the Australian Securities and Investments Commission Act 2001 (Cth) can result in significant penalties. For instance, individuals found to have acted in breach of their duties under the Act could face fines of up to $210,000 and/or imprisonment for up to five years for serious or repeated breaches. Companies, on the other hand, could be fined up to $2,100,000 for similar breaches. These penalties reflect the seriousness with which the Australian government treats compliance with financial and auditing standards. In summary, this notifiable instrument appoints three part-time members to the AASB, mandates that the appointees meet specific qualifications, and implies that there are serious consequences for non-compliance with the broader legislative framework under which the FRC operates. The instrument itself does not specify penalties but references the potential penalties under the Australian Securities and Investments Commission Act 2001 (Cth), which are substantial and designed to ensure rigorous adherence to financial reporting and auditing standards.