Interpretation

1   In this regulation "Act" means the Financial Institutions Act.

G.A.A.P.

2   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

3   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,

(a) 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,

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

(i) on the coming into force of this regulation, is in charge of audits of a financial institution, or

(ii) 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

(c) 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

4   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

(a) review the financial statements of the subsidiaries, if any, of the financial institution,

(b) review each financial report and statement that requires the approval of the directors before its filing with a regulatory body,

(c) review with the auditor

(i) the audit findings,

(ii) any restrictions on the scope of the audit, and

(iii) any problems or conflicts experienced by the auditor in performing the audit,

(d) review the response made by the directors to reports made by the auditor under section 123 of the Act,

(e) review the accounting and internal control practices of the financial institution,

(f) 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

(g) 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).]