Rules and regulation Flashcards
What is the IFAC
International Federation of Accountants - group of accounting bodies, no legal standing in members
What is the IAASB
International audit and assurance standards board - sets international standards on auditing
Why do people have an audit
Legal framework needed
Accounts require independent check
Businesses can be operated through companies
There is an exemption for small businesses
Who may act as an auditor
Individuals and firms - allowed by the rules of that body to be an auditor or someone directly authorised by the state
Who may NOT act as an auditor
Excluded by the law - an officer of the company, an employee of the company, a business partner
Excluded by ethics - close business relationships, personal relationships, long association with the client, fee dependency
How are auditors appointed
By members of the company
Appointment runs from the end of the AGM to the end of the next AGM
How are auditors removed
A majority vote at the AGM
The law requires special notice to be given
Resignation
Auditors rights
Access at all times to books and records
Receive information and explanations from the officers of the company
Speak at such meetings
Auditors duties
Report to the members on whether the financial statements give a true and fair view and have been properly prepared
