Section 53
Powers and duties of auditor
Every auditor of a scheme shall report to the interest holders on the financial statements and on the scheme’s accounting and other records relating to those financial statements and the report shall be circulated to the interest holders.
(2)
An auditor shall state in the report referred to in subsection (1)—
(a)
whether the financial statements are in his opinion properly drawn up—
(i)
so as to give a true and fair view of the scheme’s affairs; and
(ii)
in accordance with the applicable approved accounting standards;
(b)
if in his opinion the financial statements have not been drawn up in accordance with a particular applicable approved accounting standard—
(i)
whether in his opinion the financial statements, would, if drawn up in accordance with that approved accounting standard, have given a true and fair view of the scheme’s affairs; and
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(ii)
whether the financial statement would not, if so drawn up, have given a true and fair view of those matters, his reasons for holding that opinion;
(c)
whether the accounting and other records and the registers required under this Act to be kept by the management company relating to the scheme are, in his opinion, properly kept in accordance with this Act;
(d)
any defect or irregularity in the financial statements and any matter not set out in the financial statements or consolidated financial statements without regard to which a true and fair view of the matters dealt with by the financial statements or consolidated financial statements would not be obtained; and
(e)
if the auditor is not satisfied as to any matter referred to in paragraph (a), (b) or (c), his reasons for not being so satisfied.
(3)
An auditor of a scheme shall have a duty to form an opinion and to state in his report particulars of any deficiency, failure or shortcoming as to each of the following matters:
(a)
whether the auditor has obtained all the information and explanations that he requires; or
(b)
whether proper accounting and other records, including registers, have been kept by the management company relating to the scheme as required by this Act.
(4)
An auditor of a scheme has a right of access at all reasonable times to the accounting and other records including registers of the scheme, and is entitled to require from any officer of the management company any information and explanations as he requires for the purposes of audit.
66 Laws of Malaysia ACT 778
(5)
The auditor’s report shall be attached to or endorsed on the financial statements and shall be circulated to all interest holders and shall be open for inspection by any interest holders at any reasonable time.
(6)
An auditor of a scheme or the auditor’s agent authorized by the auditor in writing is entitled to attend any annual meeting of the scheme and to receive all notices of, and other communications relating to, any annual meeting which an interest holder is entitled to receive, and to be heard at any annual meeting which the auditor’s agent attends on any part of the business of the meeting which concerns the auditor in his capacity as an auditor.
(7)
An auditor shall, in the course of the performance of his duties as auditor of a scheme, immediately report in writing to the
Registrar, if he is satisfied that—
(a)
there has been a breach or non-observance of any of the provisions of this Act; and
(b)
the circumstances are such that in the auditor’s opinion the matter has not been or will not be adequately dealt with by his comment in the report on the financial statements or by bringing the matter to the notice of the directors of the management company.
(8)
An officer of a management company who refuses or fails without lawful excuse to allow an auditor of the scheme or an auditor of a management company who refuses or fails without lawful excuse to allow an auditor of the scheme access, in accordance with this section, to any accounting and other records, including registers, of the scheme or the management company in his 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 his duties or the exercise of his powers, commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding three years or to a fine not exceeding five hundred thousand ringgit or to both.
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(9)
Any auditor who contravenes subsection (7) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding three million ringgit or to both.