Article 20
Effective from 2019-12-10 - Dec 09 2019
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| 1. | Prior to appointing an external auditor, a Consumer Microfinance Company shall obtain a non-objection letter from SAMA. SAMA may require the company to appoint another auditor whenever the size and nature of its business require so. | |
| 2. | SAMA may require the Consumer Microfinance Company to replace its external auditor or may appoint another external auditor at the expense of the company in any of the following cases: | |
| a. | when necessary due to the size and nature of its business; | |
| b. | the external auditor has committed a breach of professional obligations; if there is a reason to believe that the external auditor has a conflict of interest; or | |
| c. | when necessary for the protection of the finance sector or governance considerations and the protection of shareholder’s interest. | |
| 3. | The external auditor must report to SAMA immediately all facts of which he/she obtains knowledge in the course of an audit and which: | |
| a. | justify the reservation in the audit report or the abstention from giving an opinion; | |
| b. | jeopardize the existence of the consumer microfinance company; | |
| c. | seriously impair the company’s development; | |
| d. | indicate an evidence that the executives violate any of the applicable laws, regulations or instructions in Saudi Arabia or the by-laws of the company; or | |
| e. | terminate the agreement before it ends with the reasons thereupon. | |
| 4. | SAMA may require the external auditor to explain his/her report or to reveal other facts that may have come to his/her attention during the audit, which indicates any violation of the laws, the regulations, the instructions or the by-laws of a Consumer Microfinance Company. | |