ADVOKS GLOBAL · KENYA
The Capital Markets (Commodity Markets) Regulations
55. Accounts and audit
Edition: 2022-12-31 · In force
55. Accounts and audit
(1)A commodity exchange, clearing house and commodity broker shall keep proper books of accounts and records of income and expenditure, assets and liabilities and all other transactions of the commodity exchange.(2)A commodity exchange, clearing house and commodity brokers shall, within four months after the end of each financial year, prepare a statement of accounts of the commodity exchange, clearing house and commodity brokers for the financial year, including a statement of comprehensive income and a statement of financial position.(3)A commodity exchange and commodity broker shall appoint a qualified auditor or auditors, to audit the books of accounts or to investigate any affairs of a commodity exchange or broker.(4)A commodity exchange, clearing house and commodity brokers shall submit the statement of accounts prepared under paragraph (2) to their auditors for audit.(5)The auditors shall prepare a report on the accounts and submit the report to the commodity exchange, clearing house and commodity brokers.(6)A commodity exchange, clearing house and commodity brokers shall, within thirty days from the date of receipt of the auditor's report referred to under paragraph (5), send a copy of the report and a copy of the statement of accounts to the Authority.(7)The auditors' report shall include—(a)the opinion of the auditor, whether the statement of comprehensive income for the financial year to which the report relates gives a true and fair view of the surplus or deficit of a commodity exchange, clearing house or commodity broker;(b)a statement whether, in the opinion of the auditor, the statement of financial position for the financial year gives a true and fair view of a commodity exchange, clearing house or commodity broker and their financial affairs at the end of that financial year; and(c)any other information that the auditor may consider important.(8)Every commodity exchange, clearing house, commodity broker and any of their employee or agent shall on demand by an audit firm—(a)allow the auditor reasonable access to the premises occupied by a commodity broker or by any other person acting on behalf of a commodity broker;(b)extend reasonable facilities to the auditor;(c)provide any information required by an auditor; and(d)produce for inspection any documents, books, vouchers and other records or copies of any documents, books, vouchers and other records, that the audit firm may consider necessary for the performance of its duties.(9)An auditor shall, during an audit or investigation, be entitled to examine or record statements of any member, director, partner, proprietor, associate or employee of a commodity exchange, commodity broker or clearing house, under audit or investigation.(10)A member, director, partner, proprietor, associate or employee of a commodity exchange, broker or clearing house under audit or investigation shall give the auditor all assistance in connection with the audit or investigation.