Effective from Feb 24 2013 - Mar 07 2013 To view other versions open the versions tab on the right
1.
The Finance Company must obtain a prior non-objecting letter from SAMA before appointing an external auditor. SAMA has the right to require the Finance Company to appoint another auditor if the size and nature of the company’s operation so requires.
2.
SAMA may require the Finance Company to replace its external auditor or may appoint another external auditor at the expense of the Finance Company in any of the following cases:
a.
When necessary due to the size or the nature of the business;
b.
The external auditor has committed a breach of professional obligations;
c.
There is a reason to believe that the external auditor has a conflict of interest; or
d.
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 obtains knowledge in the course of an audit and which:
a.
Might justify the reservation in the audit report or refrain from expressing opinion;
b.
Jeopardize the existence of the Finance Company;
c.
Seriously impair the Finance Company’s development, or
d.
Indicate that the managers have breached any laws, regulations, instructions applicable in the Kingdom of Saudi Arabia or the by-laws of the Finance Company.
e.
Terminate the agreement before it ends with the reasons thereupon.
4.
SAMA may require the external auditor to explain his report or to reveal other facts that may have come to his attention during the audit which indicates any violation of the laws, the regulations, the instructions or the by-laws of the Finance Company.
