44. Audit of subsidiary’s financial statements

(1) This section applies in relation to a corporate Commonwealth entity that has a subsidiary at the end of the subsidiary’s reporting period.

(2) The accountable authority of the Commonwealth entity must ensure that all the subsidiary’s financial statements for a reporting period of the subsidiary are audited.

(3) The subsidiary’s financial statements must be audited by the Auditor-General unless:

(a) the subsidiary is incorporated or formed in a place outside Australia; and

(b) either:

(i) under the law applying to the subsidiary in that place, the Auditor-General cannot be appointed as auditor of the subsidiary; or

(ii) in the Auditor-General’s opinion, it is impracticable or unreasonable for the Auditor-General to audit, or to be required to audit, the statements.

Note: If the Auditor-General is not the subsidiary’s auditor, this subsection requires the Auditor-General to do an audit of the statements in addition to that done by the subsidiary’s auditor, except in the circumstances referred to in paragraphs (3)(a) and (b).

(4) For a subsidiary that is a Corporations Act company that, under the Corporations Act 2001, is required to have those statements audited, the Auditor-General’s report on the subsidiary’s financial statements must be prepared using the relevant rules in the Corporations Act 2001. Those rules must also be used for other subsidiaries, so far as is practicable.

(5) The accountable authority of the Commonwealth entity must give the report of the auditor to the responsible Minister (whether or not the auditor is the Auditor-General), together with a copy of the subsidiary’s financial statements.

Last updated: 30 March 2016