Who is an Appropriately Qualified Person to provide Reports?
Section 2.2 of the Financial Requirements for Licensing (FRL) details the persons deemed as appropriately qualified, and the type of Report which they may complete.
Can an Appropriately Qualified Person change any part of the Independent Review Report or Audit Report if they are not happy with the standard wording?
The Appropriately Qualified Person must not change any of the wording of the report and is only to complete the blanks that are found on the face of the report.
The Independent Review Reports for Categories 1-3 contain a certification by the Appropriately Qualified Person that they have not changed the forms. The Appropriately Qualified Person is entitled to use the Reports printed off the internet or contained in Financial Requirements for Licensing.
Can an Appropriately Qualified Person re-type the Independent Review Report or Audit Report onto their own letterhead?
Yes - The Reports may also be re-typed onto the letterhead of the Appropriately Qualified Person as long as the wording in the body of the document is not altered.
If a licensee is in Categories 1 to 3, does their accountant have to assess the licensee against all Australian Accounting Standards?
The accountant must use Australian Accounting Standards in the preparation of the financial statements that will form the basis of the Independent Review Report.
By completing and certifying the Report, an Appropriately Qualified Person is warranting that all relevant Australian Accounting Standards for that licensee have been used in compiling the report.
Who can sign off an Independent Review Report -1st Year only or Audit Exemption Report for Category 4-8?
A person who is eligible to complete an IRR at Category 3 level (that is a person with a public practicing certificate and is also a member of one of the associations listed on table A in the FRL policy booklet) is also able to complete an IRR - for Category 4 to 8. These Reports do not need to be signed by an auditor. However, ONLY Registered Company Auditors can sign off an Audit Report. They can also sign off IRR at any category.
When the requirements state the accounts are to be no older than [x] months in age – does this mean the report is to be dated no more than [x] months ago or the end of the actual reporting period is to be no more than [x] months ago?
The reference to [x] months or age of accounts means no more than that length of time has lapsed between the year end date stated on the report, and the date the report is signed by the accountant.
Example: For a Licensee in Category 2, the accounts must be for a year ended no more than 7 months old. Therefore, if the Appropriately Qualified Person signs the Report on 30 September 2007 the report must be based on accounts no older than year ended 31 March 2008.
How early can a licensee submit its financial information regarding the renewal of its licence?
BSA will not accept an Independent Review Report or Audit Report if it is signed by the Appropriately Qualified Person more than 30 days prior to the licensee’s renewal date or the date the application is received by BSA.
