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Securities Services Act, 2004 (Act No. 36 of 2004)

Chapter IX : General Provisions

Auditing

90. Functions of auditor

 

(1) The auditor must, in conformity with generally accepted auditing standards, examine the accounting records and annual financial statements and be satisfied that the accounting records comply with the requirements of this Act and that the financial statements are properly drawn up 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 self-regulatory organisation if the auditor is the auditor of an authorised user or participant, and on request to the registrar —
(a) to the effect that the auditor has examined the accounting records and the annual financial statements in accordance with generally accepted auditing standards 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 by the registrar.

 

(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 or other document or particulars contemplated in section 20(5)(b) of the Public Accountants' and Auditors' Act, the auditor must, despite any contrary law, also furnish a copy thereof to the registrar, if the auditor is the auditor of a self-regulatory organisation or clearing’ house, or to the self-regulatory organisation in question, if the auditor is the auditor of’ an authorised user or participant.

 

(5) If an auditor’s appointment is terminated for any reason, including by way of resignation, the auditor must—
(a) submit to the registrar, if the auditor is the auditor of a self-regulatory organisation or clearing house or to the self-regulatory organisation in question, if the auditor is the auditor of an authorised user or participant, 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 20(5)(a) of the Public Accountants' and Auditors' Act, submit such a report to the registrar or the self-regulatory organisation, as the case may be.

 

(6) An auditor must inform the registrar or the self-regulatory organisation, 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.