Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 9: Obligations regarding disclosures to investors / [81] Audit of the annual financial statements and of the annual report of the AIF.
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81.Audit of the annual financial statements and of the annual report of the AIF.
(1) The auditor, who prepares the audit report regarding the accounting information included in the annual report, shall, immediately bring to the attention of the Securities and Exchange Commission the following information-
(a) every event or decision that came to his attention during the exercise of its duties and relates to the AIF, where this event or decision may-
result in a material breach of a provision of this Law; or
result in a material breach of a provision of the Alternative Investment Fund Managers Law; or
result in a material breach of a provision of the Open Ended Undertakings for Collective Investments Law; or
result in a material breach of a provision of the legislation of the Republic, on the basis of which an AIF management company is authorised in the Republic for the investment management of AIFs, whose assets under management do not exceed the thresholds of article 4(2) of the Alternative Investment Funds Manager Law; or
affects the ongoing operation of the AIF; or
substantially affect the ability of the AIF to fulfil its obligations to its unitholders or comply with any obligation that stems from this Law or the rules or instruments of incorporation or the partnership agreement; or
result in a refusal to certify the annual financial statements of the AIF or to the expression of an adverse audit opinion.
(b) every event or decision related to the AIF and is referred in paragraph (a) which came to its attention, during the exercise of his audit duties in another company which has close links with the AIF resulting from a control relationship of the AIF and the company, or during the exercise of another duty related to that company.
(2) Where the auditor finds that the information included in the annual financial statements or the annual report of the AIF does not correspond to the real condition or assets and liabilities of the AIF, shall inform the Securities and Exchange Commission immediately.
(3) The auditor shall provide the Securities and Exchange Commission with the information requested, in relation to any matter which relates to information the auditor is in position to know or should have known because of the exercise of its duties in the specific AIF.
(4) The auditor shall inform the Securities and Exchange Commission that the investments of the AIF have been made in violation of the relevant legislation or of the AIF fund rules or instruments of incorporation or its offering document.
(5) The Securities and Exchange Commission may request the auditor to conduct an audit in relation to one or more matters related to the operations and transactions of the AIF, at the expense of the latter.
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