Banks Act, 1990 (Act No. 94 of 1990)Chapter V : Functioning of Banks and Controlling Companies with reference to Companies Act63. Functions of auditor in relation to Authority |
[Section 63 heading substituted by section 290, item 15 in Schedule 4, of Act No. 9 of 2017]
| (1) | Notwithstanding anything to the contrary contained in the Auditing Profession Act, 2005 (Act No. 26 of 2005), or the Companies Act, but subject to the provisions of subsections (2) and (3) of this section, the auditor referred to in section 61 or 62— |
[Words preceding section 63(1)(a) substituted by section 16 of Act No. 20 of 2007]
| (a) | shall, whenever such auditor furnishes, in terms of section 20(5)(b) of the first-mentioned Act, the Independent Regulatory Board for Auiditors with copies of the report, acknowledgement of receipt and reply and with the other particulars referred to in that section, relating to an irregularity or suspected irregularity in the conduct of the affairs of the bank for which such auditor has been appointed as auditor, also furnish the Authority with such copies and particulars; and |
[Section 63(1)(a) substituted by section 32 of Act No. 22 of 2013]
| (b) | shall in writing inform the Authority of any matter relating to the affairs of a bank— |
| (i) | of which such auditor became aware in the performance of such auditor’s functions as auditor of that bank; and |
| (ii) | which, in the opinion of such auditor, may endanger the bank’s ability to continue as a going concern or may impair the protection of the funds of the bank‘s depositors or may be contrary to principles of sound management (including risk management) or amounts to inadequate maintenance of internal controls; and |
| (c) | shall, if requested by the Authority to do so, furnish him or her with written information relating to a matter referred to in paragraph (b), specified by the Authority. |
[Section 61(1) substituted by section 43(a) of Act No. 19 of 2003]
| (2) | Whenever an auditor by virtue of the provisions of subsection (1)(b) or (c) furnishes the Authority with written information, such auditor may at the same time furnish the chief executive officer of the bank to which such information relates with a copy of the relevant document. |
[Section 62(2) substituted by section 43(b) of Act No. 19 of 2003]
| (3) | The furnishing in good faith by an auditor of information in terms of subsection (1)(b) or (c) shall in no circumstances be held to constitute a contravention of any provision of the law or a breach of any provision of a code of professional conduct to which such auditor may be subject. |
[Section 63(3) substituted by section 7(b) of Act No. 42 of 1992]
| (4) | Nothing in subsection (1) contained shall be construed as conferring upon any person any right of action against an auditor which, but for the provisions of that subsection, such person would not have had. |
[Section 63(4) substituted by section 43(c) of Act No. 19 of 2003]