( ii ) are, in his opinion, complete, fair and properly drawn up ; ( iii ) present a true and fair view of the affairs of the financial institution ; the banking act 2004 also empowers the central bank to, inter alia, impose on an auditor of a bank a duty to carry out an extended scope audit or other examination and make recommendations as necessary. the bank of mauritius may also require the auditor to submit a report as to whether, in his opinion, the systems of credit provisioning and write - offs specified by the central bank are being complied with and whether or not measures to counter the possibility of money laundering or the funding of terrorist activities have been adopted by the financial institution and are being implemented in accordance with any enactment relating to anti - money laundering and prevention of terrorism and with guidelines or instructions issued by the central bank. the bank also issued a guideline on transactions or conditions respecting well - being of a financial institution reportable by the external auditor to the bank of mauritius. this guideline was reviewed in february 2014 and lays down the ground rules respecting certain types of relationships between financial institutions and their external auditors. the relationships are described in terms of categories of transactions or conditions impinging on the well - being of financial institutions that must be reported by their external auditors to the bank of mauritius. additionally, in terms of section 39 of the banking act and the guideline on transactions or conditions respecting well being of a financial institution reportable by the external auditor, the external auditors have an obligation to report directly to the bank of mauritius if they become aware of serious issues during their audit that the supervisor should know about in the public interest. in furtherance of a more effective and efficient oversight, the bank of mauritius holds trilateral meetings with the banks and their external auditors on an annual basis after the publication of the audited financial statements to review the financial results and discuss any issue of concern. concluding remarks no governance system, however well designed, can fully prevent a financial institution from being victim to frauds and other malpractices. the bai case is a crying lesson to be learnt where 3 / 4 bis central bankers'speeches deceptive practices enabled the group to mask the huge losses of the bai group since december 2010. the auditing profession has an important role to play in ensuring that financial reports reflect the way the business has actually been run or the risks to which the business has actually been exposed. the ethical values, integrity and impeacha

yandraduth googoolye : growing prominence of the role of auditors – a central banker ’ s perspective speech by mr yandraduth googoolye, first deputy governor of the bank of mauritius, at the forum of accountants, organised by the mauritius institute of professional accountants, balaclava, 11 august 2016. * * * good morning first of all, i would like to thank the mauritius institute of professional accountants – mipa – for giving me the opportunity to address this select audience today. the importance of auditors the importance of auditors in this time and age cannot be over emphasised. being myself a fellow of the chartered association of certified accountants, uk and a fellow of the association of international accountants, i am very much alive of the expectations which regulators, stakeholders and members of the public generally have from auditors. they expect auditors – internal and external auditors alike – to be the watchdog of their respective institutions. today, however, i am wearing my other hat – that of the regulator of the banking sector – and i will share with you a few reflections on the growing prominence of the role of auditors in the financial sector, particularly the banking industry, from a prudential perspective. unlike other companies, most of the funds used by banks to conduct their business belong to their creditors, in particular to their depositors. since they act as intermediaries between savers and users of capital, banks operate within a controlled regulatory and supervisory framework where sound corporate governance and effective internal control systems play a predominant role. following the financial crisis and other blows to market confidence and integrity of the financial sector – amongst which the libor rigging scandal – corporate governance as well as the role of auditors has been under a strong and critical public spotlight. the potential systemic implications of weak internal control systems of a bank on the integrity and stability of the whole financial system had the consequence of raising investors ’, regulators ’ and other stakeholders ’ expectations of boards and senior management, and of those charged with providing an independent review of a company ’ s operations and financial accounts. there were concerted efforts worldwide to improve standards of corporate behaviour and transparency through the international harmonisation of accounting standards, strengthening the principles of corporate governance, lifting the bar on the ‘ fitness and propriety ’ of directors and senior officers and introducing improved market disclosure standards. auditors were also subjected to higher levels of scrutiny by the regulators and their professional bodies. quality of audit one of the ten