Awan Hammad

    Hi Mike

    Based on the auditor contravention report guidelines yes it should be reported in 2022/23 if the breach has not been rectified at the time of the audit.

    The ACR guidelines at Test 4: Trustee behavior test states that:

    “You must report a contravention of a section or regulation listed in tables 1A and 1B where an identified contravention from a previous financial year has not been rectified at the time of the current audit.

    Where the event contravenes a section or regulation only at the time it occurs (for example, a section 66 contravention), but it remains unrectified in the following years, it should continue to be reported. Even though the contravention does not actually occur in the following years, it should be reported under the section that was originally contravened.”

    Further as it is a loan to a member it is a breach of SIS as at 30 June 2023 (and during the year) re the in-house asset rules and the loan to member rules. As a result it is a breach that has occurred during the financial year that you are auditing and should be reported if the breach meets the criteria (such as being greater than $30,000).

    The Auditors Institute


    New to this site? Sign Up

    We have upgraded our website for a better experience.

    Because of this upgrade, all members need to change their password to access their account by clicking the Forgot Password button below.

    Thank you and we look forward to your continued support!