(1)Every auditor of the Corporation shall have a right of access at all times to the books of account and vouchers of the Corporation, and shall be entitled to require from the officers of the Corporation such information and explanation as the auditor may consider necessary for the performance of his duties as auditor, and shall, amongst other matters, inquire into the following matters, namely:—(a)whether loans and advances made by the Corporation on the basis of security have been properly secured;(b)whether the terms on which loans and advances have been made are prejudicial to the interests of the Corporation or its members;(c)whether transactions of the Corporation which are represented merely by book entries are prejudicial to its interests;(d)whether so much of the assets of the Corporation as consist of shares, debentures and other securities have been sold at a price less than that at which they were purchased;(e)whether loans and advances made by the Corporation have been shown as deposits;(f)whether personal expenses have been charged to revenue account;(g)where it is stated in the books and documents of the Corporation that any shares have been allotted for cash, whether cash has actually been received in respect of such allotment, and if no cash has actually been so received, whether the position as stated in the account books and the balance-sheet is correct, regular and not misleading:Provided that the auditor shall also have the right of access to the records of all the subsidiaries and associate companies of the Corporation, in so far as they relate to consolidation of the Corporation’s financial statements with those of such subsidiaries and associate companies.
