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VOLUME: X
FINANCIAL REPORTING
CHAPTER: 46:10
Part:VII Standards of Practice of Certified Auditors of Public Interest Entities ss 4348
43.     Unauthorised audit practice

            (1) A certified auditor of a P.I.E shall not-

     (a)     employ a person whose registration by the Authority has been suspended or who has been suspended from practising as a certified auditor of P.I.E to carry out work in connection with his or her audit practice;

     (b)     practise under the name of a firm, unless the Authority has been notified of the following-

           (i)       in the case of a partnership, of the last names and initials of the partners of the firm, or

          (ii)       where the name of the firm is similar to, or includes the name of a regional or international network, or where the name of the firm mentions that it is part of a network in its letterhead or any other document, the nature of such association or relationship with the regional or international network; and

     (c)     sign any account, statement, report or other document which purports to represent work performed by a certified auditor of P.I.E, unless he or she is satisfied and is prepared to take full responsibility for the work done.

            (2) A person who fails to comply with subsection (1) shall be liable to a fine not exceeding P500 000.

44.     Aditor's report and opinion

            (1) Where an auditor reports on the financial statements of a public interest entity that he or she has audited the accounts, the auditor shall express a clear written opinion in accordance with the requirements of the applicable auditing standards, this Act and other relevant enactments.

            (2) A certified auditor of P.I.E shall, in his or her report, express an opinion unless the auditor has compiled the report using the auditing standards issued by the Authority pursuant to section 53.

            (3) Where the annual report of a public interest entity discloses the extent of compliance with any regulatory requirements to which the entity or its officers and directors are subject, the auditor shall report whether the disclosure is consistent with such other regulatory requirements.

45.     Material irregularity

            (1) Where, during the course of an audit of a public interest entity, a certified auditor of P.I.E is satisfied, or has reason to believe, that a material irregularity has taken, or is taking place, such auditor shall, without delay-

     (a)     notify, in writing, the officers and all the members of the board of the public interest entity of the irregularity, by giving particulars of the irregularity; and

     (b)     request every person referred to in paragraph (a), either individually or collectively, to-

           (i)       acknowledge receipt, in writing, of the notice, and

          (ii)       take such actions as he or she may deem necessary.

            (2) The certified auditor of P.I.E shall, within 30 days of the issuance of the notice referred to in subsection (1) (a), notify the Authority, and any other relevant regulatory body as may be prescribed by the rules, of the material irregularity referred to in subsection (1), together with such other information as he or she deems fit, unless the auditor is satisfied that the officers or the members of the board of the public interest entity referred to in subsection (1), have taken adequate steps to remedy the irregularity.

46.     Independence of auditor

            (1) A certified auditor of P.I.E shall independently carry out his or her functions and shall not-

     (a)     act in any manner contrary to any code of professional conduct and ethics adopted by the Authority or the Institute to govern the accountancy profession; or

     (b)     engage in any activity that is likely to impair his or her professional independence as an auditor, whether independence in appearance or independence of mind.

            (2) A certified auditor of P.I.E who contravenes any requirement under subsection (1) shall be subject to disciplinary proceedings of the Authority and liable to sanction by the Authority in accordance with section 48.

47.     Conflict of interest

            Where a certified auditor of P.I.E or firm considers that it may have a conflict of interest or lack professional independence in relation to an entity for which such auditor or audit firm has been engaged as a certified auditor of P.I.E or firm, such auditor or audit firm shall withdraw from auditing that entity.

48.     Sanctions of certified auditor of public interest entity

            Where a certified auditor of P.I.E has committed a contravention of this Act or any rule issued under this Act, the Authority may do any or all of the following-

     (a)     issue a warning to the certified auditor of P.I.E;

     (b)     require the certified auditor of P.I.E to adopt prescribed steps;

     (c)     require the certified auditor of P.I.E to undergo training to improve his or her capacity to provide high quality audit services; or

     (d)     impose a fine not exceeding P100 000.