Audit requirements and practices

Investor considerations

• Audited financial statements are usually required by the Inland Revenue
     and banks but not by legislation.
• Statutory audit is not required for offshore operations incorporated under
    the International Business Companies Act 1985.

Statutory requirements                                                                                              

Books and records

The Income Tax Act requires any person carrying on a trade to keep proper books of account and requires that returns of income be made. The Comptroller of Inland Revenue has the power to examine the documents and records supporting the returns.

Audited financial statements.

There are statutory audit requirements for banks and insurance companies.  

Audit and accounting

Failure to produce audited financial statements can cause concern to the Inland Revenue. Local banks and other lending institutions generally require that annual financial statements be audited where credit is to be extended.               

Accounting profession

A local professional accounting body is in the process of being established. Members of overseas institutes and associations are guided by the rules of their own professional bodies. Practicing accountants have to be licensed by the government.

Auditing standards

Reference is generally made to the International Auditing Guidelines issued by the International Federation of Accountants. Audit reports issued by local affiliates of international firms use

internationally recognized forms of audit reporting.