Article 76: Audit Requirements

Article 76: Audit Requirements

a. The fund manager must appoint an auditor prior to the establishment of a public fund. The auditor of the public fund must be registered with the Authority in accordance with the Rules for Registering Auditors of Entities Subject to the Authority's Supervision and must be independent from the fund manager according to the independence standard stated in the Law of the Profession of Accounting and Auditing and its Implementing Regulations.

b. Where (9) months have lapsed since the establishment of a public fund before the end of such public fund’s fiscal year, an audit must be conducted by the end of the first fiscal year.

c. Where (9) months or less have lapsed since the establishment of a public fund before the end of such public fund’s fiscal year, an audit may be conducted at the end of the second fiscal year of the public fund.

d. The appointment or the substitution of any auditor must be approved by the fund board.

e. The fund board must reject the appointment of an auditor, or instruct the fund manager to replace an auditor which has already been appointed in relation to the public fund, if:

1) there are any outstanding and material allegations of professional misconduct in relation to audit functions by the auditor;

2) the auditor of the public fund ceases to be an independent auditor;

3) the auditor of the public fund is no longer registered with the Authority;

4) the fund board determines that the auditor does not have sufficient qualifications and experience to perform a satisfactory auditing functions; or

5) the Authority, in its absolute discretion, instructs the public fund manager to replace the auditor appointed in relation to the public fund.

f. The audit fees of the auditor shall be determined by the fund manager with the approval of the fund board.