Clause 11

by inserting, immediately after subsection (1), the following subsection:“(1A) An auditor shall not be approved by the Authority as an auditor for banks unless he is able to comply with such conditions in relation to the discharge of his duties as may be determined by the Authority.”;

by inserting, immediately after subsection (3), the following subsection:“(3A) The Authority may impose all or any of the following duties on an auditor in addition to those provided under subsection (3):

a duty to submit such additional information in relation to his audit as the Authority considers necessary;

a duty to enlarge or extend the scope of his audit of the business and affairs of the bank;

a duty to carry out any other examination or establish any 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 bank shall remunerate the auditor in respect of the discharge by him of all or any of these additional duties.”; and

by deleting subsection (4) and substituting the following subsections:“(4) The auditor’s report made under subsection (3) shall be attached to the balance-sheet and the profit and loss account and a copy thereof together with any report submitted under subsection (3A) shall be transmitted in writing to the Authority.(5) If an auditor, in the course of the performance of his duties as an auditor of a bank, 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 bank by 50 per cent;

serious irregularities have occurred, including irregularities that jeopardise the security of the creditors; or

he is unable to confirm that the claims of creditors are still covered by the assets,he shall immediately report the matter to the Authority.”.