ADVOKS GLOBAL · KENYA
The Capital Markets (Conduct of Business) (Market Intermediaries) Regulations
43. Powers and duties of auditors
Edition: 2022-12-31 · In force
43. Powers and duties of auditors
(1)An auditor appointed under regulation 42—(a)shall have access at all reasonable times to the accounting records, other records and documents relating to the business of a market intermediary; and(b)may request the market intermediary to provide such information or explanations that he considers necessary for the performance of its duties.(2)An external auditor shall before preparing a report for the purposes of these Regulations, carry out an examination that will enable him to determine whether—(a)the annual financial statements of the market intermediary were prepared in accordance with these Regulations;(b)in the case of the statement of the financial position, a true and fair view of the financial state of affairs of the market intermediary was given as at the end of the financial year;(c)in the case of the statement of comprehensive income, a true and fair view of the profit or loss of the market intermediary was given for the financial year;(d)the market intermediary kept proper accounting records throughout the financial year;(e)the market intermediary kept clients’ funds and other client’s assets properly segregated as is required under these Regulations;(f)the statement of financial position and the statement of comprehensive income are in agreement with the market intermediary’s accounting records;(g)he has obtained all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of its audit;(h)the market intermediary has maintained throughout the financial year systems adequate to enable him to identify documents of title, or documents evidencing title, to securities title in safekeeping for the market intermediary’s clients in accordance with these Regulations; and(i)the market intermediary complied with these Regulations throughout the financial year.(3)An external auditor shall, after carrying out examination, submit a report on the annual financial statements of the market intermediary to the Authority.