Section 16: Appointment and powers of auditor.

(1) Every mortgage institution shall appoint annually, a person approved by the Minister, in this section referred to as "the approved auditor" whose duties shall be to make to the shareholders a report upon the annual balance sheet and profit and loss account of that institution.
(2) No person-
(a) having an interest in a mortgage institution otherwise than as a depositor; or
(b) who is a director, officer or agent of a mortgage institution; or
(c) which is a firm in which a director of a mortgage institution is interested as partner or director, shall be eligible for appointment as the approved auditor for any mortgage institution.
(3) Any person appointed as the approved auditor who-
(a) subsequently acquires any such interest as is specified in subsection (2) of this section; or
(b) subsequently becomes a partner in a firm in which a director of a mortgage institution is interested as partner or director, shall cease to be such auditor.
(4) If any mortgage institution-
(a) fails to appoint the approved auditor under subsection (1) of this section; or
(b) at any time fails to fill a vacancy for such person, the Minister shall, after consultation with the Federal Mortgage Bank, appoint the approved auditor and shall fix the remuneration to be paid by the mortgage institution to such auditor.
(5) Every auditor of a mortgage institution shall have a right of access at all times to the books, accounts and vouchers of the mortgage institution, and shall be entitled to require from the director, and officer of the mortgage institution such information and explanation as he thinks necessary for the performance of his duties.
(6) The report of the approved auditor shall be read together with the report of the board of management of the mortgage institution and two copies of each report together with the report of the board of management at the annual general meeting of the shareholders and two copies of each report together with the auditor's analysis of doubtful advances, shall be sent to the Federal Mortgage Bank which shall transmit a copy of each report to the Minister.
(7) For the purposes of this section, an approved auditor shall be an auditor who is a member of one of the professional bodies for the time being declared by the Ministry by notice in the Federal Gazette to be approved for such purposes.
(8) No auditor shall be approved for the purposes of this section unless-
(a) he is resident in Nigeria; and
(b) he is carrying on in Nigeria full-time professional practice as a public accountant and auditor.