Section 185: Duty of auditor to disclose irregularity or undesirable practice.

(1) The auditor shall:
(a) report to the manager any irregularity or undesirable practice in the administration of the collective investment scheme which has come to his notice in the ordinary course of fulfilling his audit responsibilities or performing other functions in terms of this Act; and
(b) if there is reasonable cause to believe that such report is or might be of material significance to the Commission, submit a copy of such report to the Commission.
(2) For the purposes of this section, a report is of material significance to the Commission if it deals with a matter which, because of its nature or potential financial impact, has caused or is likely to cause financial loss to the scheme or any of its investors or creditors.
(3) An Auditor who fails to perform any of the duties referred to in this section, is liable to a penalty of N100,000.