Banking Act · 2024 Revised Edition · Part · General
98. Auditing
Official textFrom Attorney General's Chambers, unchanged
Notwithstanding the provisions of the Companies Act
(Chapter 39) every bank shall appoint annually an auditor who shall be a person approved by the Authority and not disqualified under subsection (2)
bank
“bank” means a company which carries on banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
from holding such an appointment; and for the purposes of this section an
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“approved auditor” is an auditor eligible for appointment as an auditor under the Companies Act (Chapter 39).
No person shall be qualified to be appointed an auditor of a bank or to continue to hold such an appointment, if —
he is not or ceases to be an approved auditor;
he is or becomes a director, controller, officer or agent of the bank; or
he has or acquires a financial or proprietary interest in the bank otherwise than as a depositor.
The Authority may appoint an auditor for a bank —
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
if the bank fails to appoint an auditor;
if it considers it desirable that another auditor should act with the auditor appointed under subsection (1);
if it considers it desirable to replace the auditor appointed under subsection (1), and may at any time, fix the remuneration to be paid by the bank to the auditor.
The duties of an auditor appointed under subsection (1) or (3)
shall be —
to carry out, for the year in respect of which he is appointed, an audit of the accounts of the bank; and
to make a report in accordance with the provisions of the
Companies Act (Chapter 39) —
in the case of a bank incorporated in
Brunei Darussalam, upon the annual balance sheet and profit and loss account that are referred to in section 28;
and
in the case of a bank incorporated outside
Brunei Darussalam, upon the annual balance sheet and
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profit and loss account showing the assets and liabilities and profit or loss arising out of the bank’s operations in Brunei Darussalam.
The Authority may impose all or any of the following duties on an auditor in addition to those provided under subsection (4) —
a duty to submit such additional information in relation to his audit as the Authority considers necessary;
a duty to enlarge or extend the scope of his audit of the business and affairs of the bank;
a duty to carry out any other examination or establish any procedure in any particular case; and
a duty to submit a report on any of the matters referred to in paragraphs (b) and (c), and the bank shall remunerate the auditor in respect of the discharge by him of all or any of these additional duties.
The auditor’s report made under subsection (4) shall be attached to the balance sheet, income and expense statement, and the profit and loss account and a copy thereof together with any report submitted under subsection (5) shall be transmitted in writing to the Authority.
An auditor of a bank shall notify the Authority of any information which relates to the business or affairs of the bank and of which he becomes aware in his capacity as auditor of the bank or of a body with which it is closely linked body control or in preparing any report under this
Act in the following circumstances —
the information is such as to give the auditor reasonable cause to believe, as regards the bank concerned —
that there is or has been or may have been a failure to fulfil any of the criteria specified in section 8 and that the failure is likely to be of material significance;
that its licence should be revoked under section 21;
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that there is or has been, or may be or may have been, a contravention of any provision of this Act and that the contravention is likely to be of material significance; or
that the continuous functioning of the bank may be affected;
in a case where the auditor is the auditor of the bank concerned, the information is such as to lead to the auditor’s refusal to certify the accounts or to the expression of reservation.
In subsection (7)(a)(iii), “of material significance” means of material significance for the exercise of the functions of the Authority under this Act.
No duty to which an auditor of a bank may be subject shall be regarded as contravened by reason of his communicating in good faith to the
Authority, whether or not in response to a request made by the Authority, any information of which he becomes aware or opinion that he may form in his capacity as auditor and which —
relates to the business or affairs of the bank or of a body with which the bank is linked by control; and
is relevant to any function of the Authority under this Act or any other written law.
Terms defined in s 2
Authority
Defined · s 2“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
bank
Defined · s 2“bank” means a company which carries on banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
director
Defined · s 2“director” includes any person occupying the position of director of a company, whatever the title of his office, and includes a person in accordance with whose directions or instructions the directors of a company are accustomed to act and an alternate or substitute director;
officer
Defined · s 2“officer”, in relation to a company, includes — (a) a director, the secretary or an employee of the company; (b) a receiver or manager of any part of the undertaking of the company appointed under a power contained in any instrument; and (c) the liquidator of the company appointed in a voluntary winding up;