138. Auditors’ Functions

(1) A Company’s Auditor must, in preparing a report in relation to the accounts of the Company, conduct the investigations necessary to enable the Auditor to form an opinion about the following matters:

• (a) whether proper Accounting Records have been kept by the Company and proper returns adequate for the audit have been received from branches or offices not visited by the Auditor;
• (b) whether the Company’s accounts are in agreement with the Accounting Records and returns;
• (c) whether the Company’s accounts have been prepared in compliance with any applicable accounting principles or standards.

(2) Contravention of subsection (1) is punishable by a fine.

(3) If the Auditor is of the opinion that proper Accounting Records have not been kept by the Company, that proper returns adequate for the audit have not been received from branches or offices not visited by the Auditor, that the accounts are not in agreement with the Accounting Records and returns, or that the accounts do not comply with any applicable principles or accounting standards, the Auditor must state that opinion in the report.

(4) The Auditor has a right of access, at all reasonable times, to the Company’s Records, and is entitled to require from the Company’s Officers all the information and explanations that the Auditor considers necessary for the purposes of the audit.

(5) The Auditor is entitled to receive notice of, and attend, any meeting of Shareholders and to be heard on any part of the business of the meeting that concerns the Auditor.

(6) If the Auditor does not obtain all the information and explanations that the Auditor considers, necessary for the purposes of the audit, the Auditor must state that fact in the report.

(7) Contravention of subsection (6) is punishable by a fine.