—(1) The accounts of a Town Council shall be audited by the Auditor-General or such other auditor as may be appointed annually by the Minister in consultation with the Auditor-General.
(2) A person shall not be qualified for appointment as an auditor under subsection (1) unless he is an approved company auditor under the Companies Act (Cap. 50).
(3) The remuneration of the auditor shall be paid out of the Town Council Fund.
(4) The auditor shall, as soon as practicable after the accounts have been submitted for audit by a Town Council, send a report of his audit to the Town Council.
(5) The auditor shall in his report state —
whether the financial statements show fairly the financial transactions and the state of affairs of the Town Council;
whether proper accounting and other records have been kept, including records of all assets of the Town Council whether purchased, donated or otherwise;
whether the receipts, expenditure, investment of moneys, and the acquisition and disposal of assets by the Town Council during the financial year have been in accordance with this Act; and
such other matters arising from the audit as he considers should be reported.
(6) The auditor may at any other time submit such periodical and special reports to the Minister and the Town Council upon any matter arising out of the performance of his audit as may appear to him to be necessary.
(7) The auditor or any person authorised by him is entitled at all reasonable times to full and free access to all accounting and other records relating, directly or indirectly, to the financial transactions of a Town Council.
(8) The auditor or a person authorised by him may make copies of or extracts from any such accounting and other records.
(9) The auditor may require any person to furnish him with such information in the possession of that person or to which that person has access as the auditor considers necessary for the purposes of his functions under this Act.
(10) Any person who fails, without any reasonable cause, to comply with any requirement of the auditor under subsection (9) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000.
(11) As soon as the accounts of a Town Council and the financial statements have been audited in accordance with the provisions of this Act, a copy of the audited financial statements signed by the chairman, together with a copy of any report made by the auditor, shall be submitted to the Minister and displayed for public inspection in such places within the Town as the Town Council may direct.
(12) Where the Auditor-General is not the auditor of a Town Council, a copy of the audited financial statements and any report made by the auditor shall be forwarded to the Auditor-General at the same time they are submitted to the Town Council.
(13) The Minister shall as soon as practicable cause a copy of the audited financial statements and the auditor’s report of a Town Council to be presented to Parliament.
(14) A Town Council shall, as soon as practicable after the end of each financial year, submit to the Minister an annual report on the activities of the Town Council during that financial year and the Minister shall cause a copy of every such report to be presented to Parliament.