[COM 430] General requirement for auditor independence430 

430

(1) An auditor contravenes this subsection if—

• (a)the auditor engages in audit activity in relation to an audited company or managed investment scheme at a particular time;
• (b)a conflict of interest situation exists in relation to the audited company or managed investment scheme at that time;
• (c)at that time the individual auditor is aware that the conflict of interest situation exists; and
• (d)the auditor does not, as soon as possible after the auditor becomes aware that the conflict of interest situation exists—
  • (i)notify the Ministry of Justice of the conflict of interest within 21 days; and
  • (ii)take all reasonable steps to ensure that the conflict of interest situation ceases to exist.

(2) Within 21 days of becoming aware of the conflict of interest, an auditor must notify the Ministry of Justice and company or managed investment scheme being audited as to whether the conflict of interest continues to exist or has been resolved.

(3) The obligations imposed by this section are in addition to, and do not derogate from, any obligation imposed by—

• (a)another provision of this Act;
• (b)auditing standards; or
• (c)a code of professional conduct.