Singapore legislation
Section 41
Section 41
Appointment and duties of auditors
(1)
Despite the provisions of the Companies Act 1967, every finance company must appoint annually an auditor approved by the Authority.
(2)
An auditor must not be approved by the Authority as an auditor for finance companies unless the auditor is able to comply with such conditions in relation to the discharge of the auditor’s duties as may be determined by the Authority.
(3)
The Authority may appoint an auditor —
if the finance company fails to appoint an auditor; or
if the Authority considers it desirable that another auditor should act with the auditor appointed under subsection (1),and may at any time fix the remuneration to be paid by the finance company to that auditor.
(4)
The duties of an auditor appointed under subsections (1) and (3) are to carry out, for the year in respect of which the auditor is appointed, an audit of the financial statements of the finance company and to make a report in accordance with section 207 of the Companies Act 1967.
(5)
The Authority may impose all or any of the following duties on an auditor in addition to those provided under subsection (4):
a duty to submit any additional information in relation to the auditor’s audit that the Authority considers necessary;
a duty to enlarge or extend the scope of the auditor’s audit of the business and affairs of the finance company;
a duty to carry out any other examination or establish any other procedure in any particular case; and
a duty to submit a report on any of the matters referred to in paragraphs (b) and (c),and the finance company must remunerate the auditor in respect of the discharge by the auditor of all or any of these additional duties.
(6)
The auditor’s report made under subsection (4) must be attached to the financial statements and a copy of the report together with any reports submitted under subsection (5) must be transmitted in writing to the Authority.
(7)
If an auditor, in the course of the performance of the auditor’s duties as an auditor of a finance company, is satisfied that —
there has been a serious breach or non-observance of the provisions of this Act or that otherwise a criminal offence involving fraud or dishonesty has been committed;
losses have been incurred which reduce the capital funds of the finance company by 50%;
serious irregularities have occurred, including irregularities that jeopardise the security of the creditors; or
the auditor is unable to confirm that the claims of creditors are still covered by the assets,the auditor must immediately report the matter to the Authority.