Singapore legislation
Clause 70
Clause 70
Duties of auditor
(1)
Where in the performance of his duties as an auditor for a relevant person, an auditor becomes aware —
of any matter which in his opinion may adversely affect the financial position of a relevant person to a material extent;
of any matter which in his opinion may constitute a breach of any provision of this Act or a criminal offence involving fraud or dishonesty;
that irregularities that have a material effect upon the accounts have occurred, including irregularities that jeopardise the funds or property of the clients of a relevant person,he shall immediately report the matter to the securities exchange where the relevant person is a member of that securities exchange and the Authority and in any other case to the Authority.
(2)
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 statements made in his report pursuant to subsection (1).
(3)
The relevant authority may impose all or any of the following duties on an auditor in addition to those provided under this Part:
a duty to submit such additional information in relation to his audit as the relevant authority considers necessary;
a duty to enlarge or extend the scope of his audit of the business and affairs of the relevant person;
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 relevant person shall remunerate the auditor in respect of the discharge by him of all or any of these additional duties.
(4)
An auditor appointed by the relevant authority may for the purpose of carrying out an audit —
examine on oath a relevant person or any of a relevant person’s employees and agents and any other auditor appointed under this Act as well as any other person who has been a party to a dealing in securities with the relevant person;
request a relevant person, a relevant person’s employees and agents, any other auditor appointed under this Act or any other person who has been a party to a dealing in securities with the relevant person, to produce books, accounts, documents, records and securities held by him relating to the business of the relevant person.
(5)
Any person who contravenes or fails to comply with subsection (1) shall be guilty of an offence; and any person who contravenes or fails to comply with subsection (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 2 years or to both.
(6)
Any report made by an auditor in the exercise of his powers under this section shall be submitted in writing to the relevant authority.