Directive No. SBB/19/96 Approval of Appointment of an Independent Auditor 1. Issuing Authority
This directive is issued by the National Bank of Ethiopia pursuant to the authority
vested in it by Article 41 of the Monetary and banking Proclamation No. 83/1994
and by Article 36 of the Licensing and supervision of Banking Business Proclamation No. 84/1994.
1.1 For the purpose of this Directive “associate” shall mean “any company
where the independent auditor or his partner(s) has a business interest”.
1.2 The term “bank shall mean a company licensed under Licensing and
Supervision of Banking Business Proclamation 84/1994 to undertake banking business.
3. Application for Approval
1.3 After appointing an independent auditor in line with Article 370 of the
Commercial Code of Ethiopia, every licensed bank shall annually apply to the
National Bank of Ethiopia for approval of the appointed independent auditor.
1.4 In the application for approval, the bank should confirm that such an auditor
has been properly assessed prior to the appointment and is, in the bank’s view,
able to comply with the provisions of Article 18 of the Licensing and Supervision of
Banking Business Proclamation No. 84/1994. For this purpose the bank must
seek a declaration from the auditor which will be submitted together with the
application to the effect that:
a) The auditor is qualified in terms of Article 18 of the Licensing and
Supervision of Banking business Proclamation No. 84/1994.
b) The auditor, his partners or associates do not operate an account or have
not been granted any type of facilities in the bank except in the normal course of business and at arm’s length.
Directive No. SBB/7/95 is hereby repealed and replaced by this Directive. This Directive shall enter into force as of 20th day of November 1996.