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Financial Markets Act, 2012 (Act No. 19 of 2012)

Chapter XI : Auditing

91. Functions of auditor

 

(1) The auditor must audit the annual financial statements of the regulated person in accordance with the International Standards on Auditing to obtain sufficient evidence that the financial statements are in accordance with the underlying records, and are prepared in accordance with the International Financial Reporting Standards and the requirements of the Companies Act and this Act so as to fairly present the financial position, cash-flows and the results of the operations of the regulated person.

 

(2) When an auditor of a regulated person has conducted an audit in terms of subsection (1), the auditor must, subject to subsection (3), report to the regulated person or to the exchange, central securities depository, independent clearing house or central counterparty in question, if the auditor is the auditor of an authorised user, participant or clearing member of an independent clearing house or central counterparty, and on request to the Authority—

[Words preceding section 92(2)(a) substituted by section 290, item 65(a) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]

(a) to the effect that the auditor has completed the audit of the annual financial statements in accordance with the International Standards on Auditing and in the manner required by this Act and that in the auditor’s considered opinion they fairly present the financial position, cash-flows and results of the operations of the regulated person; and
(b) on the matters prescribed in conduct standards.

[Section 91(2)(b) substituted by section 290, item 65(b) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017), Notice No. 853, GG 41060, dated 22 August 2017 - effective 9 February 2018 (Notice R. 99, GG 41433, dated 9 February 2018)]

 

(3) If the auditor is unable to make such a report or to make it without qualification, the auditor must include in the auditor’s report a statement explaining the facts or circumstances that prevented the auditor from making a report or from making it without qualification.

 

(4) When the auditor of a regulated person furnishes copies of a report contemplated in section 45(1)(a) and (3)(c) of the Auditing Profession Act, the auditor must, despite any contrary law, also furnish a copy thereof to the Authority, if the auditor is the auditor of a market infrastructure, or to the exchange, central securities depository, or independent clearing house in question, if the auditor is the auditor of an authorised user, participant or clearing member of an independent clearing house.

 

(5) If an auditor’s appointment is terminated for any reason, including by way of resignation, the auditor must—
(a) submit to the Authority, if the auditor is the auditor of a market infrastructure, or to the exchange, central securities depository, or independent clearing house in question if the auditor is the auditor of an authorised user, participant or clearing member of an independent clearing house, a statement of what the reasons are, or what the auditor believes to be the reasons, for the termination;
(b) if the auditor would, but for that termination, have had reason to submit to the regulated person a report contemplated in section 45(1)(a) and (3)(c) of the Auditing Profession Act, submit such a report to the Authority or the exchange, central securities depository or independent clearing house, as the case may be.

 

(6) An auditor must inform the Authority or the exchange, central securities depository or independent clearing house, as the case may be, in writing of any matter relating to the affairs of the regulated person of which the auditor became aware in the performance of the auditor’s functions and which, in the opinion of the auditor, is irregular or may prejudice the regulated person’s ability to meet its liabilities at all times.