122.—(1) If at any time the auditor of a credit union—

(a) has reason to believe that there exist circumstances which are likely to affect materially the credit union’s ability to fulfil its obligations to its members or meet any of its obligations under this Act,

(b) has reason to believe that there are material defects in the accounting records, systems of control of the business and records of the credit union,

(c) has reason to believe that there are material inaccuracies in or omissions from any returns made by the credit union to the F355[Bank],

(d) proposes to qualify any report which he is to provide under this Act,

(e) has reason to believe that there are material defects in the system for ensuring the safe custody of all documents of title, deeds and accounting records of the credit union, or

(f) considers that the board of directors have failed to respond to any recommendations made by him,

the auditor shall forthwith report the matter to the F355[Bank] in writing.

(2) The auditor of a credit union shall, if requested by the F355[Bank], furnish to the F355[Bank] a report stating whether in his opinion and to the best of his knowledge the credit union has or has not complied with such requirements under this Act as the F355[Bank] may have requested the auditor to furnish a report on.

(3) The auditor of a credit union shall send to it, forthwith, a copy of any report made by him to the F355[Bank] under subsection (1) or subsection (2).

(4) Whenever the F355[Bank] is of the opinion that the exercise of F355[its] functions under this Act or the protection of the interests of the members of a credit union so requires, F355[it] may require the auditor of the credit union to supply F355[it] with such information as F355[it] may specify in relation to the audit of the business of the credit union.

(5) The F355[Bank] may require that, in supplying information for the purpose of subsection (4), the auditor shall act independently of the credit union.

(6) No duty to which the auditor of a credit union may be subject shall be regarded as contravened, and no liability to the credit union, its members, creditors or other interested parties shall attach to the auditor, by reason of his compliance with any obligation imposed on him by or under this section.