Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Part X : Auditor74. Accounting records and audit |
| (1) | A manager must in respect of itself and every collective investment scheme administered by it— |
| (a) | maintain the accounting records and prepare annual financial statements in conformity with generally accepted accounting practice; |
| (b) | preserve such records in a safe place for a period of at least five years as from the date of the latest entry therein; and |
| (c) | cause such records and annual financial statements to be audited, not later than three months after the financial year end of the manager or collective investment scheme, as the case may be, or such later date as the registrar may allow, by an auditor whose appointment has been approved by the registrar in terms of section 73. |
| (2) | The auditor must— |
| (a) | examine the accounting records and annual financial statements; |
| (b) | satisfy himself or herself that the accounting records comply with the requirements of this Act; and |
| (c) | ensure that the financial statements are properly drawn up so as to fairly represent the financial position, and that the results of the operations of the manager and every portfolio of its collective investment scheme are in accordance with generally accepted accounting practice and in the manner required by this Act. |
| (3) | When the auditor of a collective investment scheme has conducted an audit in terms of subsection (2), he or she must report to the manager that the accounting records and the annual financial statements have been examined in accordance with generally accepted auditing standards and in the manner required by this Act and state whether in his or her considered opinion they fairly present the financial position and the results of the operations of the manager and its collective investment scheme. |
| (4) | If the auditor is unable to make such a report or to make it without qualification, he or she must include in his or her report a statement explaining the facts or circumstances which prevented him or her from making his or her report or from making it without qualification. |
| (5) | The auditor's report under subsection (3) must, unless all the members present agree to the contrary, be read out at the annual general meeting of the manager. |
| (6) | An auditor who fails to perform any of the duties referred to in this section, is guilty of an offence. |