Cap. 442 Art. 49Audit report.

(1) The auditor of a society shall audit the accounts and other relevant records of the society and shall forthwith inform the Board and the society or any of its officers, of any material irregularity disclosed in the course of his audit. The financial statements prepared by the society after the close of the financial year shall be audited and reported on by the auditor.

(2) A society’s auditor shall present a report on all financial statements of the society to the society’s members. Copies of the financial statements and of the auditor’s report thereon are to be laid before the society in general meeting, but shall be available for inspection by the members at the society’s premises as from five working days from the date announced for the holding of the meeting.

(3) The auditor’s report shall be drawn up in accordance with International Standards on Auditing and shall state whether, in the auditor’s opinion, the financial statements have been properly prepared in accordance with this Act, and in particular whether a true and fair view is given -

(a) of the state of affairs of the society as at the end of the accounting period; and

(b) of the income and expenditure of the society for the accounting period.

(4) A society’s auditor shall, in preparing his report, carry out such investigations as will enable him to form an opinion as to whether -

(a) proper accounting records have been kept by the society;

(b) proper returns adequate for the audit have been received from branches not visited by him;

(c) the society’s accounts are in agreement with the accounting records and returns; and

(d) the society has functioned in accordance with its statute and the provisions of this Act.

(5) If the auditor -

(a) is of the opinion that any of the items mentioned in subarticle (4) are not in conformity with the requirements of this Act; or

(b) is unable to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purpose of his audit,

(7) The audit of the accounts of a society may, for management purposes, include an examination of and a report on overdue debts, if any, and an examination of and a report on the valuation of the assets and liabilities of the society.