Article 22: Auditing Requirements

Article 22: Auditing Requirements

a) The Fund Manager must appoint an auditor prior to the establishment of the fund. The auditor of the public fund must be certified in the Kingdom 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 a fund was established more than (9) months before such public fund’s year-end, an audit must be conducted as of the end of its first fiscal year.

c) Where a fund was established (9) months or less before such fund’s year-end, an audit may be conducted at the end of the second year end of the fund.

d) The approval of the Fund Board of Directors must be obtained to appoint or change any alternative auditor. 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 fund, if:

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

2. If the auditor of the fund is no longer independent;

3. If the auditor of the fund is no longer registered with the Authority.

4. supervision 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 fund manager to replace the auditor appointed in relation to the public fund.

e) The audit fees of the auditor shall be determined by the Fund Manager with the approval of the fund board.