Mutual Banks Act, 1993 (Act No. 124 of 1993)

Regulations

Regulations relating to Mutual Banks

Chapter I : Basis of Regulation

6. Audit report
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(1) The auditor of a mutual bank shall annually, in addition to any report that a mutual bank is statutorily required to obtain from him, report on the mutual bank’s financial position and the results of its operations as reflected in all the returns, submitted in terms of Section 53 of the Act, referred to in subregulation (5) that had been submitted to the Authority as at the financial year-end of the reporting mutual bank.

 

(2)

(a) Notwithstanding the provisions of subregulation (1), the auditor shall also report whether, in his opinion the information contained in the returns at year-end, in all material respects:
(i) reasonably reflects the information that of the management accounts;
(ii) is complete in so far as all relevant information contained in the accounting and other records at the reporting date has been extracted therefrom and recorded in the returns;
(iii) is accurate in so far as it correctly reflects information contained in, and extracted from, the accounting and other records at the reporting date; and
(iv)is prepared using the same accounting policies as those applied in the management and statutory accounts.
(b) The auditor shall also report whether, in his opinion, the information contained in the returns other than at year-end in all material respects:
(i) reasonably reflects the information of the management accounts; and
(ii) is complied by the same accounting policies as those applied in the management and statutory accounts.

 

(3) In arriving at the opinion required by subregulation (2), the auditor shall annually report the extent of reliance placed on internal controls of the mutual bank as established and maintained by directors relating to financial and regulatory reporting, and compliance with the Act and the Regulations.

 

(4) In the case of amendments having been effected by a reporting mutual bank to returns submitted by it during the course of the financial year, the auditor shall, when required to do so in terms of a written request addressed by the Authority to both the reporting mutual bank and the auditor, in writing confirm that he has verified such of the amendments as have been specified by the Authority in his written request.

 

(5) The audit report contemplated in subregulation (1) shall be rendered in accordance with the wording and practices recommended from time to time by the South African Institute of Chartered Accountants, and shall be in respect of forms DI 100, DI 110, DI 200, DI 300, DI 310, DI 400, DI 401, DI 402, DI 403, DI 410, DI 420, DI 430, DI 500, DI 510, Di 520, DI 600, DI 700, DI 701, DI 702, and DI 704 submitted in respect of the reporting mutual bank’s operations in the Republic and the self-governing territories, in the independent states and elsewhere in the world.

 

(6) Form DI 900 shall be reconcilable with form DI 100, and the auditor shall within 90 days of the financial year-end of the reporting mutual bank furnish the Authority with a written report in which it is stated whether or not all forms DI 100 and DI 900 submitted by the reporting mutual bank during the financial year under review were in fact reconcilable with each other. The report shall also state whether there were any instances of non-compliance with the requirements of regulation 22(4) of these Regulations.

 

(7) For the purposes of the performance of his duties in terms of this regulation, the auditor shall obtain from the Authority, free of charge, copies of the relevant returns submitted to the Authority by the reporting mutual bank during the financial year under review.