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Auditors' report, right of access to books and to attend general meeting.
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88.—(1) The auditors of a building society shall make a report to the members on the accounts examined by them, and on the annual accounts and the directors' report which are to be laid before the society at the annual general meeting during their tenure of office.
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(2) The auditors' report shall be read at the annual general meeting of the society and shall be open to inspection by any member of the society.
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(3) The auditors' report shall state whether—
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(a) they have obtained all the information and explanations which, to the best of their knowledge and belief, were necessary for the purposes of their audit;
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(b) they are of the opinion that proper accounting records have been kept by the society;
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(c) they are of the opinion that proper returns adequate for their audit have been received from branches and agents of the society not visited by them;
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(d) the society's annual accounts are in agreement with the accounting records and the said returns;
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(e) they are of the opinion that the society's annual accounts have been properly prepared so as to conform to the requirements of or under this Act and give a true and fair view—
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(i) in the case of the balance sheet, of the state of the society's affairs as at the end of its financial year;
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(ii) in the case of the income and expenditure account, of the income and expenditure of the society for its financial year; and
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(iii) in the case of the statement of source and application of funds, of the manner in which the society has been financed and financial resources used during its financial year; and
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(f) they are of the opinion that the information given in the directors' report is consistent with the accounting records and the annual accounts for the year.
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(4) It shall be the duty of the auditors in preparing their report under this section to carry out such investigations as will enable them to form an opinion as to whether—
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(a) the society has kept proper accounting records, and
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(b) the society has maintained satisfactory systems of control of its business and records, and systems of inspection and report thereon, and
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where the auditors are of opinion that the society has failed to keep proper accounting records or to maintain a satisfactory system of control of its business or records they shall so state in their report.
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(5) Every auditor of a society shall have a right of access at all reasonable times to the books, accounts, records and vouchers of the society and to all other documents relating to its affairs (including deeds relating to property mortgaged to the society), and shall be entitled to require from the officers and employees of the society such information and explanations that are within their knowledge or can be procured by them as he thinks necessary for the performance of the duties of the auditors.
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(6) The auditors of a society shall be entitled to attend any general meeting of the society, to receive all notices of, and other communications relating to, any such meeting that a member entitled to notice of the meeting is entitled to receive and to be heard at any meeting which they attend on any part of the business of the meeting which concerns them as auditors.
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(7) Subsection (3) (e), in its application to the group accounts of a society, shall be read as referring to the society and (so far as it concerns the members of the society) the subsidiaries dealt with in the group accounts.
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(8) Where a society has a subsidiary or other associated body, then—
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(a) if the subsidiary or associated body is a body incorporated in the State, it is the duty of the subsidiary or other associated body and its auditors to give to the society's auditors such information and explanation and such access to documents as these auditors may reasonably require for the purpose of their duties as auditors of the society; and
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(b) in any other case, it is the duty of the society, if required by its auditors to do so, to take all such steps as are reasonably open to it to obtain from the subsidiary or other associated body such information and explanation and such access as are mentioned in paragraph (a).
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