Section 50: Audit and auditor’s certificate

50. Audit and auditor’s certificate (1) The accounts of an insurer shall be audited annually by its auditor appointed under section 40. (2) The auditor shall, in a certificate relating to the accounts and statements in respect of a balance sheet date of an insurer, state whether— (a) the accounts and statements to which it relates appear to him to be in accordance with the requirements of this Act, the FSC Rules, guidelines and give particulars of any matters that do not appear to him to be in accordance with those requirements; (b) the accounting records of the insurer in respect of that year appear to him to have been properly kept and to record and explain correctly the transactions and financial position of the insurer, and give particulars of accounting records that appear to him not to have been so kept and of transactions that appear to him not to have been so recorded; (c) in respect of that year, he has obtained the information and explanations that he requested; I15 – 37 [Issue 1] Insurance Act (d) he has been denied any information requested under paragraph (c), setting out the particulars of information and explanations that he requested but did not obtain; (e) he is satisfied that the accounts and statements referred to in paragraph (a) agree with the accounting records of the insurer and appear to him to represent truly the transactions and financial position of the insurer in respect of the balance sheet date to which they relate and, where any of them appear to him to fail so to represent the transactions and financial position, give particulars of the failure; (f) amounts required by section 48 (3) to be apportioned have been equitably apportioned and where they have not been so apportioned give particulars of the failure; (g) all management expenses wheresoever incurred in respect of the insurer’s business, whether directly or indirectly, have been fully debited in the revenue account or profit and loss account as expenses and, where they have not been so debited, give particulars of the amounts not so debited; and (h) every reserve has been calculated in accordance with section 49 (3), and where they have not been so calculated give particulars of the failure. [S. 50 amended by s. 18 of Act 16 of 2007 w.e.f. 28 September 2007.]