Mutual Banks Act, 1993 (Act No. 124 of 1993) > Chapter IV : Administration of Mutual Banks > 46. Functions of auditor in relation to Registrar

(1)	Notwithstanding anything to the contrary contained in the Public Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991), but subject to subsections (2) and (3) of this section, the auditor referred to in section 45 shall—

(a)

whenever he furnishes, in terms of section 20(5)(b) of the said Act, the Public Accountants' and Auditors' Board with copies of the report acknowledgement of receipt and reply and with the other particulars referred to in that section, relating to an irregularity or suspected irregularity in the conduct of the affairs of the mutual bank for which he has been appointed as auditor, also furnish the Registrar with such copies and particulars;

(b)	in writing inform the Registrar of any matter relating to the affairs of a mutual bank—

(i)	of which such auditor became aware in the performance of his functions as auditor of that mutual bank; and

(ii)

which, in the opinion of such auditor, may endanger the mutual bank’s ability to continue as a going concern or may impair the protection of the funds of the mutual bank’s depositors or may be contrary to principles of sound management (including risk management) or amounts to inadequate maintenance of internal controls; and

(c)	if requested by the Registrar to do so, furnish him with written information relating to a matter referred to in paragraph (b), specified by the Registrar.

(2)	Whenever an auditor by virtue of the provisions of subsection (1)(b) or (c) furnishes the Registrar with written information, he may at the same time furnish the chief executive officer of the mutual bank to which such information relates with a copy of the relevant document.

(3)	The furnishing in good faith by an auditor of information in terms of subsection (1)(b) or (c) shall in no circumstances be held to constitute a contravention of any provision of the law or a breach of any provision of a code of professional conduct to which such auditor may be subject.

(4)	Nothing in subsection (1) contained shall be construed as conferring upon any person any right of action against an auditor that, but for the provisions of that subsection, he would not have had.