Auditors

Question 1

By who is the first auditor appointed?
How are the following auditors appointed?
Who must you inform if you fail to appoint one?

Answer 1

Directors
Ordinary resolution
Secretary of State

Question 2

Which 3 supervisory bodies can auditors qualify with?

What must the appointed auditor not be?

Answer 2

ICAEW ICAS ACCA

Mustn’t be an officer or employee of the company or its partners

Question 3

Auditors duties 
Who do they report to?
What must they ensure is kept?
What must they ensure is received? 
What must they ensure is in agreement?

Answer 3

Members
Proper books of accounting records
Proper returns from branches not visited
Accountants with the books and returns

Question 4

Auditors powers
What are they entitled to with regards to general meetings?
What do they have access to?
What can they require?

Answer 4

Receiving notice, to attend and speak at
Books,accounts and vouchers
Information or explanation from employees/officers

Question 5

Auditors removal/resignation
For ordinary resolution they must?
What can they not be removed by?
But the auditor can resign by?
What are there connected to resignation?

Answer 5

Give special notice at the general meeting
Written resolution
Written notice to the company
Circumstances

Question 6

Audit report
How is it set out?
What does it identify?(2)
What does it describe?
What does it state?
What does it state that the directors report is?

Answer 6

Accounts audited and financial framework applied
Scope of audit
In auditors opinion accounts give a true fair view
Consistent with the accounts

Question 7

Annual accounts
Accounts must have these 2 drawn up?
What is needed if the company is a parent company?
What must it give a true and fair view of?(2)
What must notes to the accounts deal with?(3)
What must be done on behalf of the directors?
What should be included in directors report?(4)
What else must the directors provide? For who?
What must auditors provide?

Answer 7

Balance sheet and profit and loss account
Consolidated group accounts
Financial position and profit for financial year
Employee numbers and costs and directors benefits
Approved and signed off
Names of directors, activities of the company, recommended dividend and business reviews
Remuneration report, quoted companies only
Auditors report