Building Societies Act, 1989

Duties of auditor.

89.—(1) If at any time an auditor of a building society—

(a) has reason to believe that there exist circumstances which are likely to affect materially the society's ability to fulfil its obligations to shareholders or depositors or meet any of its obligations under this Act,

(b) has reason to believe that there are material defects in the accounting records, systems of control of the business and records or of inspection and report thereon,

(c) has reason to believe that there are material inaccuracies in or omissions from any returns made by the society to the Central Bank,

(d) proposes to qualify any report which he is to provide under this Act, or

(e) has reason to believe that there are material defects in the system for ensuring the safe custody of all documents of title belonging to the society and deeds relating to property mortgaged to the society,

he shall forthwith report the matter to the Central Bank in writing.

(2) An auditor of a society shall, if requested by the Central Bank, furnish to the Bank a report stating whether in his opinion and to the best of his knowledge the society has or has not complied with such requirements under this Act as the Bank so requested the auditor to furnish a report on.

(3) An auditor of a society shall send to it a copy of any report made by him to the Central Bank under subsection (1) or (2).

(4) (a) Whenever the Central Bank is of the opinion that the exercise of its functions under this Act or the protection of the interests of shareholders or depositors so requires, it may require the auditors of a society to supply the Bank with such information as it may specify in relation to the audit of the business of the society.

(b) The Central Bank may require that, in supplying information for the purpose of this subsection, the auditor shall act independently of the society.

(5) No duty to which an auditor of a society may be subject shall be regarded as contravened, and no liability to the society, its shareholders, creditors or other interested parties, shall attach to the auditor, by reason of his compliance with any obligation imposed on him by or under this section.