314/90

O.C. 1331/90

September 7, 1990

September 15, 1990

Financial Institutions Act; Credit Union Incorporation Act

Audit and Audit Committee Regulation

[includes amendments up to B.C. Reg. 185/2015, October 5, 2015]

314_90_pit

Interpretation

In this regulation Act means the Financial Institutions

Act .

G.A.A.P.

For the purposes of the Act generally accepted accounting

principles means the principles recommended in the CPA Canada Handbooks.

[am. B.C. Reg. 185/2015, s. 1.]

Qualifications of auditor

A person is qualified to be an auditor of a financial institution if, in addition to

being qualified under

section 205 of the Business Corporations

Act or

section 39.51 of the Credit Union Incorporation

Act ,

the person has not been a trustee in bankruptcy, receiver manager or liquidator of

the financial institution or of any affiliate at any time during the 2 years just

past,

in the case of a person who is an individual, that individual either

on the coming into force of this regulation, is in charge of audits of a

financial institution, or

has been qualified as an auditor under

section 205 of the Business Corporations Act or

section 39.51 of the

Credit Union Incorporation Act for at least 5 years and

has at least 2 years experience in auditing a financial institution under the direction

of an auditor of it, and

in the case of a firm of accountants, the member or employee of the firm

designated by the firm to be in charge of the audit on behalf of the firm is qualified in

accordance with paragraph (b).

[am. B.C. Reg. 210/2012, ss. (

a) and (b).]

Additional duties of audit committee

In addition to any other duties given to it under the Act, the Business

Corporations Act or the Credit Union Incorporation

Act , the audit committee of a financial institution shall

review the financial statements of the subsidiaries, if any, of the financial

institution,

review each financial report and statement that requires the approval of the

directors before its filing with a regulatory body,

review with the auditor

the audit findings,

any restrictions on the scope of the audit, and

iii

any problems or conflicts experienced by the auditor in performing the

audit,

review the response made by the directors to reports made by the auditor under

section 123 of the Act,

review the accounting and internal control practices of the financial

institution,

report and make the recommendations to the directors respecting the accounting and

internal control practices of the financial institution that the audit committee considers

appropriate in the circumstances, and

report to the directors any conflict between the auditor and the management of the

financial institution that the audit committee has been unable to resolve within a

reasonable time.

[am. B.C. Reg. 210/2012, s. (c).]

[Provisions relevant to the enactment of this regulation: Financial Institutions Act , R.S.B.C. 1996, c. 141, sections 113 (b), 115 (3) (

c) and 289 (3) (

l) and (

m) and Credit Union Incorporation Act , R.S.B.C. 1996, c. 82,

section 39.56 (3) (c)]