Appointments And Resignation

Question 1

Appointment of auditors

Answer 1

Auditor is appointed by shareholders by ordinary resolution

Question 2

Competency

Answer 2

Whether the firm has sufficient knowledge, technical skills and experience for the audit

Question 3

Resource

Answer 3

Whether the firm has adequate staff and resources to meet the reporting time frame

Question 4

Ethical threats

Answer 4

Whether the firm has ethical threats arising from the proposed appointment

Question 5

Client integrity

Answer 5

Whether the company/managers/ directors have good integrity

Question 6

Professional etiqutte letter

Answer 6

Before accepting an audit appointment all auditors are required to contact the previous audit firm

The purpose of this letter is to help ensure that the prospective auditor is in possession of all the pertinent facts

Question 7

Engagement letter

Answer 7

Issued after the auditor is appointed in accordance with ISA 20 agreeing the terms of the audit

Acts as a contract

Question 8

Resignation procedure

Answer 8

Auditors can resign at any time by depositing a written notice to this effect at the companies registered office

To be effective it must be submitted with a statement of circumstances

Company must within 14 days of the deposit send a copy to every person who is entitled to receive a copy

Notice of resignation is sent by the company to the regulatory authority

Question 9

Removal of auditors

Answer 9

An auditor can be removed at any time by an ordinary resolution at a general meeting
Special notice of 28 days