Singapore legislation
Clause 46
Clause 46
Additional powers of Authority in respect of auditors
(1)
If an auditor, in the course of the performance of his duties as an auditor of a recognised trading system provider, becomes aware —
of any matter which, in his opinion, adversely affects or may adversely affect the financial position of the recognised trading system provider to a material extent;
of any matter which, in his opinion, constitutes or may constitute a breach of any provision of this Act or a criminal offence involving fraud or dishonesty; or
of any irregularity that has or may have a material effect upon the accounts, including irregularities that affect or jeopardise or may affect or jeopardise the funds or property of investors in securities or futures contracts,he shall immediately send to the Authority a report in writing of the matter or the irregularity.
(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 statement made in his report under subsection (1).
(3)
Subsection (2) shall not restrict or affect any right, privilege or immunity that the auditor has, apart from this section, as a defendant in an action for defamation.
(4)
The Authority may impose all or any of the following duties on an auditor of a recognised trading system provider:
a duty to submit such additional information and reports in relation to his audit as the Authority considers necessary;
a duty to enlarge, extend or alter the scope of his audit of the business and affairs of the recognised trading system provider;
a duty to carry out any other examination or establish any procedure in any particular case;
a duty to submit a report on any matter referred to in paragraph (b) or (c),and the auditor shall carry out such duties.
(5)
The recognised trading system provider shall remunerate the auditor in respect of the discharge by him of all or any of the duties referred to in subsection (4).
(6)
For the avoidance of doubt, sections 207 and 208 of the Companies Act (Cap. 50) shall, to the extent to which they may be applicable, apply to the discharge of an auditor’s duties under subsection (4).