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Article (19) External Audit

C 112/2018 Effective from 24/4/2018
  1. 19.1 A Finance Company must appoint a statutory external auditor acceptable to the Central Bank, maintain proper accounting records and submit statements concerning these records to the Central Bank on the required forms.
     
  2. 19.2 The person nominated as external auditor of a Finance Company should be theoretically and practically familiar with the finance business and should have relevant managerial experience.
     
  3. 19.3 A Finance Company must obtain approval from the Central Bank prior to appointing an external auditor. The Central Bank may require the Finance Company to appoint another auditor if the size and nature of the business of the Finance Company so requires.
     
  4. 19.4 A Finance Company must not provide financing, facilities or open any accounts for its external auditors.
     
  5. 19.5 A Finance Company must rotate their external audit firm at least every 6 years subject to the conduct of a procurement procedure. In addition, a Finance Company must rotate their external audit firm’s partner in charge of the audit every 3 years.
     
  6. 19.6 The Central Bank may require a Finance Company to replace its external auditor or change the partner of its external auditor or may appoint another external auditor at the expense of the Finance Company in the following cases:
     
    1. If required by the size and nature of its business;
       
    2. If the external auditor commits a violation of a professional nature;
       
    3. If there is a reason to believe that the external auditor has a conflict of interest; or
       
    4. If the integrity of the finance sector or governance considerations and the protection of stakeholder’s interest so requires.