Implementation of BID-10 (Independent Auditor)

Bank of Namibia
71 Robert Mugabe Avenue
PO Box 2882, Windhoek, Namibia
Tel +264-61-2835130   Fax +264-61-229874

Office of the Bank of Namibia

# BANK OF NAMIBIA
## BANKING INSTITUTIONS ACT
### CIRCULAR – BIA 4/99

TO: ALL BANKING INSTITUTIONS  
DATE: 17 NOVEMBER 1999

IMPLEMENTATION OF THE DETERMINATIONS ON THE APPOINTMENT, DUTIES AND RESPONSIBILITIES OF AN INDEPENDENT AUDITOR OF A BANKING INSTITUTION (BID-10)

## 1. BACKGROUND

This Circular is issued to provide information that is required in order to ease the implementation of the Determinations on the Appointment, Duties and Responsibilities of an Independent Auditor of a Banking Institution (BID-10) and paragraph 7 of the Determinations on the Classification of Loans and the Suspension of Interest on Non-performing Loans and the Provisions for Bad and Doubtful Debts (BID-2).

## 2. MANAGEMENT LETTER

A banking institution shall be required to submit to the Bank of Namibia, within three months after the financial year-end, a copy of the management letter and such other reports issued as a result of work carried out on matters relating to banking business.

## 3. CURRENT INDEPENDENT AUDITORS

### 3.1
Clarification is hereby given that the tenure of office for current independent auditors of a banking institution will run until the conclusion of the next annual general meeting. This clarification has been given in response to queries that were raised as to whether the tenure of office for current independent auditors will automatically expire with the publication of the Determinations on the Appointment, Duties and Responsibilities of an Independent Auditor of a banking Institution (BID-10).

### 3.2
For the purposes of this Circular, a current independent auditor refers to an independent auditor:
- who has been appointed by a banking institution at the annual general meeting which was held at a date prior to the date of the publishing of the Determinations on the Appointment, Duties and 4. APPOINTMENT AND APPROVAL PROCESS OF AN INDEPENDENT AUDITOR

### 4.1
In order to facilitate the practical implementation of section 43(2) of the Banking Institutions Act, 1998 (Act No. 2 of 1998), a banking institution should follow the process outlined below when appointing an independent auditor and applying to the Bank for the approval of such appointment:
- a banking institution may nominate an independent auditor, who they wish to appoint at the next annual general meeting, and request the Bank for a preliminary approval of the independent auditor prior to the annual general meeting. In this process, the application forms referred to as Annexure B of the Determinations on the Appointment, Duties and Responsibilities of an Independent Auditor of a Banking Institution (B5D-10) should be completed and lodged with the Bank by a banking institution;

## 5. REPORTING to the Bank of Namibia

### 5.1
The independent auditor shall report to the Bank of Namibia, within three months after the financial year-end, a copy of the management letter and such other reports issued as a clarification to the Circular BIA 2/09, which is issued on 17 November 1999.

###  as a result of work carried out to matters relating to management report to REPORTING to the REPORTING with the Bank of Bank of Namibiania
### 5.2
The independent auditor shall report to the add a new line after this section

### 5.2
The independent auditor shall report to the Bank of Namibia, within three
months after the deadline for submission of its financial statements