Marginal note:Duty of replacement auditor
345. (1) Where an auditor of a company has resigned or the appointment of an auditor has been revoked, no person or firm shall accept an appointment or consent to be appointed as auditor of the company until the person or firm has requested and received from the other auditor a written statement of the circumstances and reasons why the other auditor resigned or why, in the other auditor’s opinion, the other auditor’s appointment was revoked.
(2) Notwithstanding subsection (1), a person or firm may accept an appointment or consent to be appointed as auditor of a company if, within fifteen days after a request under that subsection is made, no reply from the other auditor is received.
Marginal note:Effect of non-compliance
(3) Unless subsection (2) applies, an appointment as auditor of a company is void if subsection (1) has not been complied with.
Examinations and Reports
Marginal note:Auditor’s examination
346. (1) The auditor of a company shall make such examination as the auditor considers necessary to enable the auditor to report on the annual statement and on other financial statements required by this Act to be placed before the shareholders and policyholders, except such annual statements or parts thereof as relate to the period referred to in subparagraph 331(1)(a)(ii).
Marginal note:Auditing standards
(2) The auditor’s examination referred to in subsection (1) shall, except as otherwise specified by the Superintendent, be conducted in accordance with generally accepted auditing standards, the primary source of which is the Handbook of the Canadian Institute of Chartered Accountants.
Marginal note:Reliance on actuary
(3) An auditor of a company may, in conducting the examination referred to in subsection (1), use the valuation by the actuary of the company, or by any other actuary, of
(a) the actuarial and other policy liabilities of the company as at the end of a financial year; and
(b) the increase in the actuarial liabilities of the company for a financial year.
Marginal note:Actuarial practices
(4) A valuation by an actuary other than the actuary of the company may be used only if it was done in accordance with generally accepted actuarial practice and with any changes that may have been determined by the Superintendent and by following any additional directions that may have been made by the Superintendent.
- 1991, c. 47, s. 346;
- 2007, c. 6, s. 214.
Marginal note:Right to information
347. (1) On the request of the auditor of a company, the present or former directors, officers, employees or representatives of the company shall, to the extent that they are reasonably able to do so,
(a) permit access to such records, assets and security held by the company or any entity in which the company has a substantial investment, and
(b) provide such information and explanations
as are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of auditor of the company.
Marginal note:Directors to provide information
(2) On the request of the auditor of a company, the directors of the company shall, to the extent that they are reasonably able to do so,
(a) obtain from the present or former directors, officers, employees and representatives of any entity in which the company has a substantial investment the information and explanations that such persons are reasonably able to provide and that are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of auditor of the company; and
(b) provide the auditor with the information and explanations so obtained.
Marginal note:No civil liability
(3) A person who in good faith makes an oral or written communication under subsection (1) or (2) shall not be liable in any civil action arising from having made the communication.
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