Hong Kong Regulations

LEVERAGED FOREIGN EXCHANGE TRADING (ACCOUNTS AND AUDIT) RULES - SECT 3

Auditor's report

Caution: This is a past version. See the current version here.

An auditor's report under section 29(1) of the Ordinance shall contain a
statement by the auditor as to whether-

   (a)  he has audited the financial statements of the licensed leveraged
        foreign exchange trader in accordance with the Auditing Standards
        issued by the Hong Kong Society of Accountants;

   (b)  he has obtained all the information and explanations which to the best
        of his knowledge and belief are necessary for the purpose of the
        audit;

   (c)  in the auditor's opinion-

        (i)    the financial statements give a true and fair view of the state
               of affairs of the licensed leveraged foreign exchange trader as
               at the end of the financial period and of the profit or loss
               and cash flows of the licensed leveraged foreign exchange
               trader for the period then ended and have been properly
               prepared in accordance with the Companies Ordinance ( Cap 32);

        (ii)   the licensed leveraged foreign exchange trader has properly
               kept the records required to be kept by it under the
               Leveraged Foreign 
               Exchange Trading (Books, Contract Notes and Conduct of Business) Rules
               ( Cap 451 sub. leg.);

        (iii)  the profit and loss account and the balance sheet are in
               compliance with the requirements of these Rules;

        (iv)   the licensed leveraged foreign exchange trader has properly
               kept all segregated trust accounts in accordance with section
               23 of the Ordinance;

        (v)    the computation of liquid capital for the purposes of the
               Leveraged Foreign Exchange Trading (Financial Resources) Rules
               ( Cap 451 sub. leg.) is correctly compiled from the books and
               records of the licensed leveraged foreign exchange trader and
               if such is not correctly compiled, the nature and extent of the
               incorrectness; and

   (d)  there appears to the auditor to have been any contravention of the
        Leveraged Foreign Exchange Trading (Financial Resources) Rules ( Cap 
        451 sub. leg.) by the licensed leveraged foreign exchange trader
        during the financial period covered by the auditor's report. (Enacted
        1994)