Dec 08 BITS Session 3

[omerpk]

(a) How are external auditors appointed and removed?

(b) What are the rights and duties of external auditors?

[vervicy]

External auditors are appointed and removed as follows:

External auditors are appointed by members (shareholders) at each general meeting where accounts are laid ( as re-appointment of existing auditor not automatic)

By directors where the first general meeting at which accounts are laid until conclusion of meeting

-To fill casual vacancy

-Secretary of state can appoint auditors if no auditors are appointed or reappointed
at general meeting.

External auditors are removed by:
- Notice of removal which is a 28days special notice with a copy sent to auditors
- If a elective resolution is place a written resolution to terminate auditors appointment
( a meeting must be convene by directors to take place at a reasonable time)
- General meeting a which their term of office would have expired.

Rights and duties of external auditors are respectively;

- To acess at all times the books, accounts and vouchers of the comany
- Information and explaintions from the company's officers as they think necessary to
carry out the duties as auditors.
- attendance at general metings
- to speak at general meeting
- rights to copy of written resolution proposed

Duties
- Compliane with legislation (whether acounts are prepared with the relevant legislation)
- Truth and fairness of accounts
- proper records and return ae kept and adequate for the audit received from branches
- agreement of accounts to records

[worstbestgf]

External auditors are appointed and removed as follows:

They are usually appointed by the shareholders at the shareholders Annual General Meeting (AGM) where they hold office until the next AGM.

In the circumstances where shareholders are appointed by directors, the two situations that must occur are to fill a casual vacancy caused by illness, death, resignation or removal and where a company is newly established, a director may hire an auditor before its first AGM.

Responsibility for the removal of an auditor rest with the shareholders and not management. The auditor may simply not offer themselves for reappointment when their contract is finished

The procedure is as follows:

- The company calls for an Extraordinary General Meeting (EGM) and sends copies of the proposed resolution to the auditor
- the meeting is set to convene within 28 days
- the auditor makes representations as to why he should continue to hold office and may ask that the representations is copied to all members. The auditor has a right to read the representation at the EGM if through some fault of the company, it was not distributed to the members.
- the company can pass an ordinary resolution to remove the auditor.
- the company notifies the Registrar of companies within fourteen days
- the auditor sends a statement of circumstances (soc) to the company's registered office within fourteen days of ceasing to hold office

[Suze]

External auditors are appointed and reviewed as follows:

They are usually appointed by the shareholders at the shareholders Annual General Meeting (AGM) where they hold office until the next AGM.

In the circumstances where shareholders are appointed by directors, the two situations that must occur are to fill a casual vacancy caused by illness, death, resignation or removal and where a company is newly established, a director may hire an auditor before its first AGM.

I don't think I answered how auditors are reviewed

you said that THE 2 situations MUST occur in circumstances where directors appoint the auditors...........please note that should any one situation arises directors may appoint the auditor. Should Directors fail to appoint one then the Secretary of state will appoint one.