Clause 13

An auditor of a company shall report to the members on the accounts required to be laid before the company in general meeting and on the company’s accounting and other records relating to those accounts and if it is a holding company for which consolidated accounts are prepared shall also report to the members on the consolidated accounts.(2) An auditor shall, in a report under this section, state —

whether the accounts and, if the company is a holding company for which consolidated accounts are prepared, the consolidated accounts are in his opinion properly drawn up —

so as to give a true and fair view of the matters required by section 169 to be dealt with in the accounts and, if there are consolidated accounts, in the consolidated accounts; and

in accordance with the provisions of this Act so as to give a true and fair view of the company’s affairs;

whether the accounting and other records and the registers required by this Act to be kept by the company and, if it is a holding company, by the subsidiaries other than those of which he has not acted as auditor have been, in his opinion, properly kept in accordance with the provisions of this Act;

in the case of consolidated accounts —

the names of the subsidiaries (if any) of which he has not acted as auditor;

whether he has considered the accounts and auditor’s reports of all subsidiaries of which he has not acted as auditor, being accounts that are included (whether separately or consolidated with other accounts) in the consolidated accounts;

whether he is satisfied that the accounts of the subsidiaries that are consolidated with other accounts are in form and content appropriate and proper for the purposes of the preparation of the consolidated accounts, and whether he has received satisfactory information and explanations as required by him for those purposes; and

whether the auditor’s report on the accounts of any subsidiary was made subject to any qualification (other than a qualification that is not material in relation to the consolidated accounts), or included any comment made under subsection (3) of this section, and, if so, particulars of the qualification or comment;

any defect or irregularity in the accounts or consolidated accounts and any matter not set out in the accounts or consolidated accounts without regard to which a true and fair view of the matters dealt with by the accounts or consolidated accounts would not be obtained; and

if he is not satisfied as to any matter referred to in paragraph (a), (b) or (c) of this subsection, his reasons for not being so satisfied.(3) It is the duty of an auditor of a company to form an opinion as to each of the following matters: —

whether he has obtained all the information and explanations that he required;

whether proper accounting and other records (including registers) have been kept by the company as required by this Act;

whether the returns received from branch offices of the company are adequate; and

whether the procedures and methods used by a holding company or a subsidiary in arriving at the amounts taken into any consolidated accounts were appropriate to the circumstances of the consolidation,and he shall state in his report particulars of any deficiency, failure or short-coming in respect of any matter referred to in this subsection.(4) An auditor of a company has a right of access at all times to the accounting and other records (including registers) of the company, and is entitled to require from any officer of the company and any auditor of a related company such information and explanations as he desires for the purposes of audit.(5) An auditor of a holding company for which consolidated accounts are required has a right of access at all times to the accounting and other records (including registers) of any subsidiary, and is entitled to require from any officer or auditor of any subsidiary, at the expense of the holding company, such information and explanations in relation to the affairs of the subsidiary as he requires for the purpose of reporting on the consolidated accounts.(6) The auditor’s report shall be attached to or endorsed on the accounts or consolidated accounts and shall, if any member so requires, be read before the company in general meeting, and is open to inspection by any member at any reasonable time.(7) An auditor of a company or his agent authorised by him in writing for the purpose is entitled to attend any general meeting of the company and to receive all notices of, and other communications relating to, any general meeting which a member is entitled to receive, and to be heard at any general meeting which he attends on any part of the business of the meeting which concerns the auditor in his capacity as auditor.(8) If an auditor, in the course of the performance of his duties as auditor of a company, is satisfied that —

there has been a breach or nonobservance of any of the provisions of this Act; and

the circumstances are such that in his opinion the matter has not been or will not be adequately dealt with by comment in his report on the accounts or consolidated accounts or by bringing the matter to the notice of the directors of the company or, if the company is a subsidiary, of the directors of its holding company,he shall forthwith report the matter in writing to the Registrar.(9) An officer of a corporation who refuses or fails without lawful excuse to allow an auditor of the corporation or an auditor of a corporation who refuses or fails without lawful excuse to allow an auditor of its holding company access, in accordance with this section, to any accounting and other records (including registers) of the corporation in his custody or control, or to give any information or explanation as and when required under this section, or otherwise hinders, obstructs or delays an auditor in the performance of his duties or the exercise of his powers, shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding one thousand dollars.Auditors and other persons to enjoy qualified privilege in certain circumstances174A.—

An auditor shall not, in the absence of malice on his part, be liable to any action for defamation at the suit of any person in respect of any statement which he makes in the course of his duties as auditor, whether the statement is made orally or in writing.(2) A person shall not in the absence of malice on his part be liable to any action for defamation at the suit of any person in respect of the publication of any document prepared by an auditor in the course of his duties and required by or under this Act to be lodged with the Registrar.(3) This section does not limit or affect any other right, privilege or immunity that an auditor or other person has as defendant in an action for defamation.”.