| (b) | The report must give particulars of the reportable irregularity referred to in subsection (1)(a) and must include such other information and particulars as the registered auditor considers appropriate. |
| (a) | The registered auditor must within three days of sending the report to the Regulatory Board notify the members of the management board of the entity in writing of the sending of the report referred to in subsection (1) and the provisions of this section. |
| (b) | A copy of the report to the Regulatory Board must accompany the notice. |
| (3) | The registered auditor must as soon as reasonably possible but no later than 30 days from the date on which the report referred to in subsection (1) was sent to the Regulatory Board— |
| (a) | take all reasonable measures to discuss the report referred to in subsection (1) with the members of the management board of the entity; |
| (b) | afford the members of the management board of the entity an opportunity to make representations in respect of the report; and |
| (c) | send another report to the Regulatory Board, which report must include— |
| (i) | a statement that the registered auditor is of the opinion that— |
| (aa) | no reportable irregularity has taken place or is taking place; or |
| (bb) | the suspected reportable irregularity is no longer taking place and that adequate steps have been taken for the prevention or recovery of any loss as a result thereof, if relevant; or |
| (cc) | the reportable irregularity is continuing; and |
| (ii) | detailed particulars and information supporting the statement referred to in subparagraph (i). |
| (4) | The Regulatory Board must as soon as possible after receipt of a report containing a statement referred to in paragraph (b)(i)(cc) of subsection (3), notify any appropriate regulator in writing of the details of the reportable irregularity to which the report relates and provide it with a copy of the report. |
| (5) | For the purpose of the reports referred to in subsections (1) and (3), a registered auditor may carry out such investigations as the registered auditor may consider necessary and, in performing any duty referred to in the preceding provisions of this section, the registered auditor must have regard to all the information which comes to the knowledge of the registered auditor from any source. |
| (6) | Where any entity is sequestrated or liquidated, whether provisionally or finally, and a registered auditor referred to in section 44(1)(a) at the time of the sequestration or liquidation— |
| (a) | has sent or is about to send a report referred to in subsection (1) or (3), the report must also be submitted to a provisional trustee or trustee, or a provisional liquidator or liquidator, as the case may be, at the same time as the report is sent to the Regulatory Board or as soon as reasonably possible after his or her appointment; or |
| (b) | has not sent a report referred to in subsection (1) or (3), and is requested by a provisional trustee or trustee, or a provisional liquidator or liquidator, as the case may be, to send a report, the registered auditor must as soon as reasonably possible— |
| (i) | send the report together with a motivation as to why a report was not sent; or |
| (ii) | submit a notice that in the registered auditor’s opinion no report needed to be submitted, together with a justification of the opinion. |
| (7) | If an individual registered auditor has reported an irregularity to the Regulatory Board in terms of subsection (1)— |
| (a) | the individual registered auditor may not be removed; and |
| (b) | the entity may not remove the registered auditor, |
until subsection (3) is complied with.
[Section 45(7) inserted by section 14 of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
| (8) | Where an individual registered auditor has reported an irregularity in terms of subsection (1) and resigns from the firm before subsection (3) is complied with, that auditor must do the necessary handover to the incoming auditor regardless of when the resignation takes effect. |
[Section 45(8) inserted by section 14 of the Auditing Profession Amendment Act, 2021 (Act No. 5 of 2021), Notice No. 228 of GG44493, dated 26 April 2021]
