Section 32Part 5 — The Authority: Powers and Enforcement
Duty of auditor
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If an auditor, in the course of carrying out an audit or producing a report under section 9 becomes aware of or has reasonable grounds to believe that the licensee or registered person —
is or is likely to become unable to meet its obligations as they fall due;
carrying on or attempting to carry on business otherwise than in compliance with —
this Act or any regulations made hereunder;
Part XVIIA of the Companies Act (2023 Revision) , Part 12 of the Limited Liability Companies Act (2023 Revision) and Part 8 of the Limited Liability Partnership Act (2023 Revision) , if the licensee is a “corporate services provider” as defined in that Part;
the Anti-Money Laundering Regulations (2023 Revision); or
a condition of the licence or registration;
is carrying on or attempting to carry on business in a manner that is prejudicial to its clients or is winding up its business voluntarily in a manner that is prejudicial to its clients or creditors; or
is carrying on or attempting to carry on business without maintaining any or sufficient accounting records or record keeping systems to enable the auditor to carry out an audit or produce a report, the auditor shall immediately give the Authority and the licensee written notice of the knowledge or belief and giving reasons therefor.
An auditor who contravenes subsection (1) is liable to removal by the Authority from its list of approved auditors.
A reference in this section to an auditor carrying out an audit or preparing a report on a licensee or registered person includes an auditor who was engaged to carry out such an audit or prepare such a report or who was in the course of so doing but resigned before completion or whose contract to carry out same was otherwise terminated.
No duty to which an auditor of a licensee or registered person may be subject shall be regarded as being contravened by reason of the auditor communicating in good faith to the Authority any information or opinion on a matter specified in subsection (1) or providing any information or opinion in response to a request made by the Authority pursuant to a power conferred by this Act . Virtual Asset (Service Providers) Act (2024 Revision) Section 33
An auditor shall not be liable in damages for anything done or omitted to be done in the discharge or proposed discharge of the auditor’s functions under this Act in relation to the preparation of a report or in relation to any notice given under subsection (1) unless it is shown that the act or omission was in bad faith.