Revised Laws of Saint Lucia (2021)

34.   Auditing requirements

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   (1)   Notwithstanding the provisions relating to auditing of a regulated entity in any enactment specified in Schedule 1, the Authority may require a regulated entity to appoint an auditor, satisfactory to the Authority whose duties shall—

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   (a)     be to examine the books and records in accordance with international auditing standards and to make a report on the annual financial statements and financial position, and in every such report the auditor shall state whether in the auditor's opinion the financial statements give a true and fair view of the state of affairs of the regulated entity and of its results for the period then ended; and

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      (b)     include any of the following duties as may from time to time be imposed on the auditor by the regulated entity at the request of the Authority—

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         (i)     to submit such additional information in relation to the audit of the regulated entity as the Authority considers necessary,

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         (ii)     to carry out any other examination or establish any procedure in any particular case,

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         (iii)     to submit a report on any of the matters referred to in subparagraphs (i) and (ii),

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         (iv)     to submit a report on the financial and accounting systems and risk management controls of the regulated entity,

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         (v)     to submit a report on whether prudent policies, practices and procedures are approved and reviewed by the management of the regulated entity and communicated to relevant officers,

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         (vi)     to certify whether suitable measures to counter money laundering and to combat the financing of terrorism have been adopted by the regulated entity and are being implemented in accordance with the applicable laws.

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   (Amended by Act 7 of 2016)

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   (2)   The financial statements referred to in subsection (1)(a) must be prepared in accordance with international accounting standards.

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   (3)   A director, manager, secretary, employee or agent of a regulated entity or other person having an interest in any regulated entity otherwise than as a prescribed retailed customer is not eligible for appointment as auditor for a regulated entity under subsection (1).

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   (4)   A person appointed as auditor under subsection (1) who, after an appointment, acquires any interest in a regulated entity, otherwise than as a prescribed retailed customer, or becomes a director, manager, secretary, employee or agent of a regulated entity shall immediately cease to be such auditor.

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   (5)   A regulated entity shall remunerate the auditor in respect of the discharge by the auditor of all or any of the duties set out in subsection (1).

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   (6)   The regulated entity shall submit to the Authority the agreement of work between the regulated entity and the auditor, upon finalization of the agreement of work and no later than 30 days before the audit is to begin, in order for the Authority to determine whether the auditor appointed under subsection (1) is satisfactory to the Authority.

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   (7)   If a regulated entity fails to appoint an auditor satisfactory to the Authority, the Authority may, at the expense of the regulated entity, appoint an auditor for the regulated entity.

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   (8)   The Authority may, at the expense of a regulated entity, appoint an auditor to conduct an independent audit of the regulated entity, in accordance with the instructions of the Authority, and to report the findings or results of the audit to the Authority.

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   (9)   If, in the course of the performance of an auditor's duties under this section, the auditor is satisfied that—

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      (a)     there has been a breach of the provisions of this Act, an enactment listed in Schedule1, or any regulation, notice, order, guidelines or directions issued under this Act or an enactment specified in Schedule 1;

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      (b)     there is evidence that a criminal offence involving fraud or other dishonesty may have been committed;

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      (c)     losses which reduce the paid-up or assigned capital of a regulated entity have been incurred;

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      (d)     serious irregularities, including irregularities that affect the interests of customers have occurred;

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      (e)     the existence of assets to cover claims by customers cannot be confirmed; or

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      (f)     there is evidence of a suspicious transaction in accordance with the Money Laundering (Prevention) Act,

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   the auditor shall immediately report the matter to the regulated entity and the Authority.

(Substituted by Act 15 of 2012)

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   (10)   The Authority may request copies of reports on the operations of a regulated entity prepared by its internal and external auditors. (Substituted by Act 15 of 2012)

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   (11)   (Deleted by Act 15 of 2012).