When can the General Manager cancel the registration of an auditor?

In Plain English

The General Manager has the power to cancel someone's registration as an auditor in certain situations. These situations include:

• If the auditor hasn't been doing their job properly according to the rules in the Fair Work (Registered Organisations) Act 2009.
• If the auditor hasn't done any auditing work, or any significant amount of auditing work, for at least 5 years, meaning they might not have the necessary experience anymore.
• If the General Manager believes the auditor is no longer a suitable person to be registered.
• If the auditor asks to have their registration cancelled.
• If the auditor's registration as a company auditor is cancelled.
• If the auditor is no longer living in Australia, according to the Fair Work (Registered Organisations) Regulations 2009.

Before cancelling a registration, the General Manager must give the auditor a chance to explain their side of the story. The auditor must also be notified in writing about the cancellation and the reasons for it.

Detailed Explanation

The General Manager's power to cancel an auditor's registration is outlined in the Fair Work (Registered Organisations) Act 2009 and the Fair Work (Registered Organisations) Regulations 2009.

Specifically, the General Manager may cancel registration under the following circumstances:

• Failure to perform duties: If the General Manager is satisfied that the auditor has failed to carry out their duties under the Fair Work (Registered Organisations) Act 2009 (s255G(1)(a)).
• Lack of recent practical experience: If the auditor has not performed any audit work, or any significant audit work, during a continuous period of not less than 5 years, and as a result has ceased to have the practical experience necessary for carrying out audits for the purposes of this Act (s255G(1)(b)). The General Manager must consider the nature of the audit, the extent of the person's involvement, and the level of responsibility assumed when determining if the audit work is significant (s255G(2)).
• Not a fit and proper person: If the General Manager is satisfied that the person is otherwise not a fit and proper person to remain registered as an auditor (s255G(1)(c)).
• Auditor's request: If the person requests that their registration be cancelled (s255G(3)).
• Cancellation of company auditor registration: If the person was registered as an auditor under subsection 255B(2) on the basis that the person was a registered company auditor at the time of registration, the General Manager may cancel the registration if the person’s registration as a registered company auditor is cancelled (s255H(a)).
• Ceasing to be a resident in Australia: The General Manager may cancel the registration of a person as an auditor if the person has ceased to be resident in Australia (Fair Work (Registered Organisations) Regulations 2009 reg 159C(3)).

Before cancelling the registration under certain circumstances, the General Manager must give the person an opportunity to appear at a hearing and make submissions (s255D(1), Fair Work (Registered Organisations) Regulations 2009 reg 159C(5)). If the General Manager decides to cancel the registration, they must give the person a written notice setting out the decision and the reasons for it, no later than 14 days after the decision (s255J(1)). The decision comes into effect at the end of the day on which that notice is given to the person (s255J(1)(b)).