Maintain auditor / financial reporting (Chapter 2M)
Large proprietary, public and disclosing entities must prepare and lodge audited financial reports.
Who must comply
Public companies, disclosing entities, large proprietary companies, registered MIS.
What triggers it
Meeting the relevant threshold or category.
When due
Annual — typically 3 months for disclosing entities, 4 months for others, after FY end.
Evidence required
Audited financial report, directors' report, auditor's report, lodgement via ASIC.
Max penalty
Civil penalties + director duty exposure for materially incorrect reports
Summary
Chapter 2M of the Corporations Act requires public companies, disclosing entities, large proprietary companies (any two of: $50M consolidated revenue, $25M consolidated gross assets, 100 employees) and registered managed investment schemes to prepare audited annual financial reports and lodge with ASIC within prescribed timeframes (typically 3-4 months after FY end).
Enforced by
Source legislation
Entity types
Topics
Related obligations
- CWLTHLodge an annual SMSF audit before lodging the SMSF Annual ReturnSelf-managed super funds must be audited by an ASIC-registered auditor each year.
- CWLTHTrust account audit + ASIC / state regulator submissionHolders of client trust accounts (real estate, legal, conveyancing) must lodge annual audited accounts.
- CWLTHComply with NDIS quality auditor cycle for registered providersRegistered NDIS providers must pass NDIS Quality auditor cycle (verification + certification audits).
- CWLTHDetermine large proprietary company status annuallyTest the three large-prop thresholds at the end of each financial year — failing any two triggers Chapter 2M reporting.
Frequently asked questions
- Who must comply with auditor / financial reporting (Chapter 2M)?
- Public companies, disclosing entities, large proprietary companies, registered MIS.
- What triggers auditor / financial reporting (Chapter 2M)?
- Meeting the relevant threshold or category.
- When is auditor / financial reporting (Chapter 2M) due?
- Annual — typically 3 months for disclosing entities, 4 months for others, after FY end.
- What is the maximum penalty for auditor / financial reporting (Chapter 2M)?
- Civil penalties + director duty exposure for materially incorrect reports
- What evidence is required for auditor / financial reporting (Chapter 2M)?
- Audited financial report, directors' report, auditor's report, lodgement via ASIC.
Source: https://asic.gov.au/regulatory-resources/financial-reporting-and-audit/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.