Auditors
If your corporation is registered under the CATSI Act as a medium or large corporation, you might need an auditor. An auditor helps the corporation stay compliant with its financial duties.
Who can be an auditor
An auditor must be a qualified and registered professional who:
- is a registered company auditor or an authorised audit company
- is not a part of your corporation’s management or staff
- has experience and knowledge of the laws and accounting practices relevant to Aboriginal and Torres Strait Islander corporations.
Large corporations and any corporations with a consolidated gross operating income (CGOI) of $5 million or more can use:
- a registered company auditor
- an audit firm that has at least one member who is a registered company auditor
- an authorised audit company.
Small corporations with a CGOI between $100,000.00 and $5 million, and medium corporations with a CGOI less than $5 million, can use:
- a registered company auditor
- an audit firm that has at least one member who is a registered company auditor
- an authorised audit company
- a certified practising accountant or a fellow of CPA Australia
- a chartered member or affiliate of the Institute of Chartered Accountants in Australia
- a member of a fellow of the Institute of Public Accountants.
Consolidated gross operating income is the total value of the money made by the corporation and any entities it controls.
Auditor duties
An auditor reviews the financial statements of the corporation to make sure they’re accurate and compliant.
An auditor must:
- examine the corporation's financial reports
- ensure the corporation complies with financial reporting requirements under the CATSI Act
- state whether the financial reports are true and fair in an audit report.
Auditor independence
Auditors must be independent to the corporation. They must not have any financial or personal relationships with the corporation.
This is important so they can give an unbiased opinion on the financial health of the corporation.
Engage an auditor
To engage an auditor, look for someone who is eligible based on their:
- qualifications
- skills and experience
- independence.
You could:
- look for an auditor through professional accounting bodies
- ask for recommendations from other corporations.
Once you’ve found an auditor:
- Formally appoint the auditor at your corporation’s annual general meeting (AGM). Members need to agree on who the auditor is and how much they will be paid.
- Inform us of the appointment within 14 days.
Notify us online about changes to your auditor or you can use this form.
Auditor resignation
If your auditor resigns:
- Notify us within 14 days.
- Seek a new auditor quickly so your corporation continues to meet its obligations under the CATSI Act.
- Appoint a new auditor at the next AGM or sooner if needed.
- Inform us of the appointment within 14 days.
Notify us online about changes to your auditor or you can use this form.