—(1) Notwithstanding the provisions of the Companies Act (Cap. 50), every bank shall appoint annually an auditor approved by the Authority.
(2) An auditor shall not be approved by the Authority as an auditor for banks unless he is able to comply with such conditions in relation to the discharge of his duties as may be determined by the Authority.
(3) The Authority may appoint an auditor —
if the bank fails to appoint an auditor; or
if it considers it desirable that another auditor should act with the auditor appointed under subsection (1),
and may at any time fix the remuneration to be paid by the bank to that auditor.
(4) The duties of an auditor appointed under subsections (1) and (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 section 207 of the Companies Act —
in the case of a bank incorporated in Singapore, upon the annual balance-sheet and profit and loss account that are referred to in section 25(1); and
in the case of a bank incorporated outside Singapore, upon the annual balance-sheet and profit and loss account showing the assets and liabilities and profit or loss arising out of the bank’s operations in Singapore.
(5) 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;
(6) The bank shall remunerate the auditor in respect of the discharge by him of all or any of the additional duties mentioned in subsection (5).
(7) The auditor’s report made under subsection (4) shall be attached to the balance-sheet 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.
(8) If an auditor, in the course of the performance of his duties as an auditor of a bank, is satisfied that —
there has been a serious breach or non-observance of the provisions of this Act or that otherwise a criminal offence involving fraud or dishonesty has been committed;
losses have been incurred which reduce the capital funds of the bank by 50%;
serious irregularities have occurred, including irregularities that jeopardise the security of the creditors; or
he is unable to confirm that the claims of creditors are still covered by the assets,
he shall immediately report the matter to the Authority.