Financial Statements, Audits And Annual Returns Flashcards
What section requires all companies to have an accounting record
Section 374 of CAMA
Where should an according record be kept?
In the registered office of the company or anywhere else the directors deem fit
How long should an accounting record be preserved?
For 6 years from when it was made
Directors have a duly to day the financial statements of a company before the general meeting within….
Not less than 18 months after the incorporation of the company and subsequently once every year
The form of a financial statement should be in line with….
The financial reporting council of Nigeria
…… must be annexed to the balance sheet provided to the directors at a general meeting
A profit and loss account
A balance sheet must be signed by….
2 directors
A companies financial statement shall be sent when?
21 days to the meeting
What kind of company can give CAC a modified financial statement?
A small company
What kind of companies are exempted from having auditors
Companies that have not engaged in business since its incorporation
Small companies
What kind of company can never be exempted from having auditors
Insurance companies and banks
Who appoints the first auditors of a company
The directors
Who appoints the subsequent auditors of a company
The members at an annual general meeting
How long are the first auditors in office?
From the appointment to the next AGM
How is an auditor appointed?
True special notice and ordinary resolution
When must CAC be notified of the appointment of an auditor?
Within 14 days
When must CAC be notified of the appointment of an acting auditor to fill a vacancy?
Within one week
What kind of companies require an audit committee
Public companies
The auditors report shall state the matters set out in….
The fifth schedule of CAMA
The audit committee is made up of……
3 members and 2 non- executive directors
What are the qualifications of the members of the audit committee
They must be financially literate, and at least one of them must be a member of a professional accounting body in Nigeria
Removal of an auditor is done by
Ordinary resolution and special notice
When on auditor is removed before the expiration of his tent, CAC must be noted within…..
14 days
What kind of notice does a resigning auditor requisition?
EGM
