Singapore legislation
Clause 39
Clause 39
Annual account and audit
(1)
Notwithstanding the provisions of the Companies Act (Cap. 50), every designated financial holding company —
shall on an annual basis, appoint, and obtain the approval of the Authority for the appointment of, an auditor; and
where, for any reason, the auditor ceases to act for the designated financial holding company, shall, as soon as practicable thereafter, appoint another auditor approved by the Authority.
(2)
An auditor shall not be approved by the Authority as an auditor for a designated financial holding company unless the auditor is able to comply with such conditions in relation to the discharge of his duties as may be determined by the Authority.
(3)
The Authority may appoint an auditor —
if the designated financial holding company fails to appoint an auditor; or
if it 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 designated financial holding company to the auditor.
(4)
The duties of an auditor appointed under subsections (1) and (3) shall be —
to carry out, for the year in respect of which he is appointed, an audit of the accounts of the designated financial holding company;
to make a report in accordance with section 207 of the Companies Act, or if the Companies Act does not apply, in accordance with that section with the necessary modifications, upon the latest audited annual balance-sheet and profit and loss account, together with any notes thereon, of the designated financial holding company; and
to prepare such statements of account and other statement and in such form and manner as may be specified by the Authority and lodge them with the Authority.
(5)
The Authority may, by notice in writing, impose all or any of the following duties on an auditor:
a duty to submit such additional information to the Authority 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 designated financial holding company;
a duty to carry out any other examination or establish any procedure in any particular case;
a duty to submit a report on any of the matters referred to in paragraphs (b) and (c).
(6)
An auditor to whom a notice is given under subsection (5) shall comply with such direction or directions as may be specified in the notice.
(7)
The designated financial holding company shall remunerate the auditor in respect of the discharge by him of all or any of the additional duties mentioned in subsection (5).
(8)
Notwithstanding any other provision of this Act or the provisions of the Companies Act, the Authority may, if it is not satisfied with the performance of duties by an auditor appointed by a designated financial holding company —
at any time direct the designated financial holding company to remove the auditor; and
direct the designated financial holding company, as soon as practicable thereafter, to appoint another auditor, and the designated financial holding company shall comply with such direction.
(9)
An auditor’s report made under subsection (4) shall be attached to the balance-sheet and the profit and loss account and a copy thereof together with any report submitted under subsection (5) shall be transmitted in writing to the Authority.
(10)
If an auditor, in the course of the performance of his duties as an auditor of a designated financial holding company, is satisfied that —
there has been a serious contravention of any provision of this Act or that an offence involving fraud or dishonesty has been committed;
losses have been incurred which reduce the capital funds of the designated financial holding company by 50% or more;
serious irregularities have occurred, including irregularities that jeopardise the security of the creditors of the designated financial holding company; or
he is unable to confirm that the claims of creditors of the designated financial holding company are still covered by the assets,he shall immediately report the matter to the Authority.
(11)
Any designated financial holding company which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.
(12)
Any auditor who contravenes subsection (4), (6) or (10) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
(13)
Any designated financial holding company which fails to comply with a direction under subsection (8) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part thereof during which the offence continues after conviction.