206. Auditors’ remuneration

Question 1

206. Auditors’ remuneration

Answer 1

General overview
[206.01] By and large, an auditor’s remuneration is determined by market forces and is a matter of agreement between the company and the auditor. The auditor’s remuneration has to be approved by the members at a general meeting: s 205(16). However, it is common for accounting entities to render a suite of services to the company they audit which may compromise their independence in view of the fees involved in these consultancy contracts. Hence, s 206 provides for the full disclosure of the auditor’s emoluments in respect of services rendered, other than auditing services before the general meeting.