Commercial Companies Law 2001: Contents

Commercial Companies Law 2001
Commercial Companies Law
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Article (219)

The Auditor shall attend the general assembly and express his opinion in all matters pertinent to his work, and in particular, the company's balance sheet. He shall read his report to the general assembly. The report shall be prepared in accordance with the international auditing principles and standards or the standards approved by the competent authority; and shall include in particular the following details:

a— Whether the auditor obtained the information he deemed necessary for doing his work satisfactorily.
b— Whether the balance sheet and the profit and loss account are conforming to the facts, and are prepared according to the international accounting standards or to the standards approved by the competent authority; and whether they include all what is provided for in the law and in the company's articles of association and honestly and clearly reflect the actual financial position of the company.
c— Whether the company maintains regular accounts.
d— Whether the stock taking undertaken by the company has been carried out in accordance with the accepted practices.
e— Whether the data included in the report of the board of directors are in conformity with what is stated in the company's books.
f— Whether there have been violations of the provisions of the law or the company's articles of association during the financial year in a way that affects the activity of the company or its financial position, and whether these violations are still existing to the extent of the information made available to him.

If the company has more than one auditor and they do not submit a joint report, each of them shall prepare an independent report.

The auditor's report shall be read at the general assembly, and each shareholder shall have the right to discuss the report and request clarifications on its contents.

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