Chapter 2 Regulation of auditors.pptVIP

End of Chapter 2. Chapter 2 Regulation of auditors * Lecturer 陈丹 Topic list Auditors duties and rights Appointment, removal and resignation of auditors 3. ISAs * Regulation of auditors * Auditor duties and rights Appointment, removal and resignation of auditors * Companies act Regulation of auditors * Duties: the auditors must consider the following Companies Act director’s benefits Whether disclosure of director’s benefits has been made in accordance with the Companies Act 2006 legislation Accounting law accounts Whether the accounts have been prepared with the accounting law Whether the accounts are true and fair accounting records Whether the accounts are in agreement with the accounting records other information Whether the other information in the financial report is consistent with the accounts Auditors duties and rights * Written resolutions Information and explanations Auditors duties and rights * Auditor rights Records A right of access at all times to the vouchers, books and accounts of the company Information and explanations A right to require from the company’s officers such information and explanations as they think necessary for the performance of their duties as duties General meetings A right to receive all notices of general meetings A right to attend general meetings A right to speak at general meetings Written resolutions A right to receive a copy of any written resolution proposed When the auditor cease to hold office for any reason (removal, resignation or do not offer themselves for re-election), the auditor would make a ?statement of circumstances? or ?statement of no circumstances’. * Right or duty? Auditors duties and rights Objectives of statement of (no) circumstances : Ensure auditors not to be removed for improper reasons without the knowledge of shareholders. Ensure auditors not to avoid their responsibilities by ‘going quietly’. * Auditors duties and rights Appointment of auditors who? when? ter