Overview of CADB Process
CADB’s main function is to conduct Hearings to consider applications to sanction registered company auditors (Respondents) on various grounds relating to their fitness and propriety as auditors.
Type of application – “Conduct” application or “Administrative” application
Applications to CADB are categorised as “Conduct” or “Administrative” applications.
Applications of a more serious type, (alleging a failure by a Respondent to carry out the duties of an auditor adequately and properly, or alleging that the Respondent is not a fit and proper person), are categorised by CADB as “Conduct” applications and tend to involve more complexity and hearing time.
Applications to CADB in relation to more perfunctory matters (such as a failure to lodge an annual statement) which do not usually involve the exercise of CADB’s discretion and/or will usually only require documentary evidence, are categorised by CADB as “Administrative” applications.
Preparation for Hearing
Once an Application has been filed, CADB is obliged to provide the Respondent with an opportunity to appear at a Hearing before the Board before making any orders. CADB requires the parties to take certain steps to prepare for the Hearing. These steps include the exchange of documents stating each party’s case (called a Concise Outline and Concise Response), exchanging documentary evidence and witness statements and exchanging written submissions.
Hearings
A date for Hearing is fixed promptly. The Hearing takes place before a Panel of CADB consisting of a Panel Chairperson and equal numbers of Accounting Members and Business Members (either a three-member Panel or a five-member Panel).
Hearings are usually conducted in private. For more information see Hearings.
Decisions
If the Board is satisfied at the Hearing that the grounds for the Application have been made out, the Board may make orders against the Respondent, including cancellation or suspension of the registration of the auditor and other sanctions.
A separate hearing may be held to hear evidence and submissions about appropriate sanctions. If the Panel decides to issue sanctions against the auditor, it will usually publish its Decision. If the Panel refuses to exercise its powers, the Decision is not published.
Reviews or Appeals
The applicant or the respondent in any particular matter may seek review of, or appeal against a decision of the Board either to the Administrative Review Tribunal (under the Administrative Review Tribunal Act 2024) or to the Federal Court of Australia (under the Administrative Decisions (Judicial Review) Act 1977).
In appropriate cases, those bodies may grant a stay in relation to publication of the Board's decision. In those circumstances the Board will not publish the Notice of Decision until the relevant stay is lifted.
Procedural Rules
CADB has issued a Practice Note 1 (PN1), which contains procedural rules and guidance relating to proceedings before the Board.
CADB has also issued a Practice Note 3 (PN3) containing procedures relating to costs.
PN3 - Guidance and Procedures Relating to Costs Orders Published (PDF 239 KB)
Related information
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Information for Respondents
Information for registered company auditors who have been served with an Application
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Hearings
How hearings are conducted at the Board