| Q. |
What does it mean? |
| A. |
As a result of CLERP 9, the Corporations Act 2001 has been amended and accountants are now able to become registered company auditors (RCAs) by satisfying a new, Australian Securities and Investments Commission (ASIC) approved audit competency standard. |
| Q. |
Why was the new standard introduced? |
| A. |
In the past, the time-based measure alone was thought to be too restrictive for members in multi-service practices wanting to become an RCA. The new standard provides members of the profession with more than one pathway to become an RCA.
The new standard maintains the integrity and professionalism of the auditing profession and addresses public interest issues by requiring a high degree of competency in a range of audit tasks. |
| Q. |
What is an RCA? |
| A. |
RCA means registered company auditor and registration of RCAs is approved by ASIC. |
| Q. |
Does it affect me? |
| A. |
The introduction of the 2004 Audit Competency Standard applies to public practitioners and employees who work as auditors.
Some audits require the auditor to be an RCA. For example some specific state legislation requires auditors who undertake audits to be either an RCA only, or an RCA or a CPA. |
| Q. |
What has changed? |
| A. |
Before the introduction of ASIC's audit competency standard, to become an RCA you were required to meet a number of time-based measures to prove your practical experience.
Now, you have two alternative pathways to become an RCA:
- the time-based approach
- the competency-based approach
|
| Q. |
I am already an RCA - does this change anything for me? |
| A. |
No. If you are an RCA you have already satisfied the requirements set by ASIC. |
| Q. |
What practical experience is required? |
| A. |
This depends on whether you are following time-based or competency based measures.
Time-based measure:
You must provide evidence of your practical experience as set out by the regulations:
- auditing - at least 3000 hours of practical auditing experience
- at least 750 hours of practical experience supervising audits
- both gained within the past five years
Competency based measure:
Competency refers to the knowledge and skills drawn on in performing tasks in particular work contexts. A competency standard describes the specific tasks required to competently perform a particular function. For example, the competency based standard lists 20 specific tasks in which applicants are required to be proficient. |
| Q. |
What are the education requirements? |
| A. |
You must complete one of the prescribed courses in auditing as outlined in the Corporations Regulations 2001 in addition to your existing degree, diploma or certificate. This includes courses such as the CPA Program. |
| Q. |
How can I become a RCA? |
| A. |
You are required to lodge documents with ASIC establishing compliance with educational requirements, and practical experience, capability to perform the duties of an auditor, and that you are otherwise a fit and proper person.
Go to ASIC's website and review Policy Statement 180 Auditor registration and information sheets:
- how to register as an auditor
- how to register as an authorised audit company
The information sheets explain what information you need to give ASIC for registration, what documentary proof is needed to support the application and the application process. It also includes information about the conditions it may impose on registration.
In addition to the application form on ASIC's website, Appendix V to the competency standard provides further guidance for registration using the competency based approach. In general an applicant should submit the log book, Statement by the Assessor, and a Statement by the Referee to ASIC. |
