207.—(1) An auditor of a company must report to the members —
[36/2014] (1A) A report by an auditor of a company under subsection (1) must be furnished by the auditor to the directors of the company in sufficient time to enable the company to comply with the requirements of section 203(1) in relation to that report but no offence is committed by an auditor under this subsection if the directors have not submitted the financial statements for audit as required under this Part in sufficient time, having regard to the complexity of the financial statements, for the auditor to make the auditor’s report. [36/2014] (2) An auditor must, in a report under this section, state —
(3) It is the duty of an auditor of a company to form an opinion as to each of the following matters:
and the auditor must state in the auditor’s report particulars of any deficiency, failure or shortcoming in respect of any matter referred to in this subsection. [36/2014] (4) An auditor is not required to form an opinion in the auditor’s report as to whether the accounting and other records of subsidiary corporations (which are not incorporated in Singapore) of a Singapore parent company have been kept in accordance with this Act. [36/2014] (5) An auditor of a company has a right of access at all times to the accounting and other records, including registers, of the company, and is entitled to require from any officer of the company and any auditor of a related company such information and explanations as the auditor desires for the purposes of audit. (6) An auditor of a parent company for which consolidated financial statements are required has a right of access at all times to the accounting and other records, including registers, of any subsidiary corporation, and is entitled to require from any officer or auditor of any subsidiary corporation, at the expense of the parent company, such information and explanations in relation to the affairs of the subsidiary corporation as the auditor requires for the purpose of reporting on the consolidated financial statements. [36/2014] (7) The auditor’s report must be attached to or endorsed on the financial statements or consolidated financial statements and must, if any member so requires, be read before the company in general meeting and must be open to inspection by any member at any reasonable time. [36/2014] (8) An auditor of a company or an agent authorised by the auditor in writing for the purpose is entitled to attend any general meeting of the company and to receive all notices of, and other communications relating to, any general meeting which a member is entitled to receive, and to be heard at any general meeting which the auditor attends on any part of the business of the meeting which concerns the auditor in such capacity as auditor. (9) If an auditor, in the course of the performance of such duties as auditor of a company, is satisfied that —
the auditor must immediately report the matter in writing to the Registrar. [36/2014] (9A) Despite subsection (9), if an auditor of a public company or a subsidiary corporation of a public company, in the course of the performance of the auditor’s duties as such, has reason to believe that a serious offence involving fraud or dishonesty is being or has been committed against the company by officers or employees of the company, the auditor must immediately report the matter to the Minister. [36/2014] (9B) No duty to which an auditor of a company may be subject is to be regarded as having been contravened by reason of the auditor reporting the matter mentioned in subsection (9A) in good faith to the Minister. (9C) An auditor who is under a legal duty under any other written law to make a report to the Monetary Authority of Singapore in relation to an offence involving fraud or dishonesty that the auditor becomes aware of in the course of the performance of the auditor’s duties as such, is not required to make a report to the Minister under subsection (9A) if the auditor has already made a report in relation to the same offence under that written law to the Monetary Authority of Singapore. (9D) In subsection (9A), “a serious offence involving fraud or dishonesty” means —
(10) An officer of a corporation who refuses or fails without lawful excuse to allow an auditor of the corporation or an auditor of a corporation who refuses or fails without lawful excuse to allow an auditor of its parent company access, in accordance with this section, to any accounting and other records, including registers, of the corporation in the officer’s or auditor’s custody or control, or to give any information or explanation as and when required under this section, or otherwise hinders, obstructs or delays an auditor in the performance of the auditor’s duties or the exercise of the auditor’s powers, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $4,000. [36/2014] (11) The reference to the registers of —
does not include any register kept by the company, subsidiary corporation of a parent company or corporation (as the case may be) under Part 11A. [15/2017] What is the responsibility of an auditor on nonIf the auditor identifies or suspects non-compliance, the auditor will need to consider whether law, regulation and ethical requirements either require the auditor to report to an appropriate authority outside the entity, or establish responsibilities under which this may be appropriate.
What is the auditor's responsibility when noncompliance with laws or regulations is identified or suspected?23 If the auditor suspects that management or those charged with gov- ernance are involved in noncompliance, the auditor should communicate the matter to the next higher level of authority at the entity, if it exists.
What happens if nonNon- compliance with laws and regulations may result in fines, litigation or other consequences for the entity that may have a material effect on the financial statements.
When an auditor becomes aware of possible noncompliance?When the auditor becomes aware of information concerning a possible instance of noncompliance, the auditor should obtain an understanding of the nature of the act and the circumstances in which it has occurred, and sufficient other information to evaluate the possible effect on the financial statements.
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