Rules and Regulation Flashcards
What type of company must have an audit regardless of their size?
Financial services companies or companies listed on the stock exchange
What type of person may not be able to act as an auditor?
If they have been excluded by law or excluded by the code of ethics
In the first instance, who usually appoints an auditor?
Members (shareholders)
In what instance would the secretary of state appoint an auditor?
If no auditor is appointed by the members or directors
In what type of company are auditors appoointed from one AGM to the next?
Public companies
In what type of company are auditors appointed until they are removed?
Private companies
When are directors allowed to appoint an auditor?
When the first auditor is appointed or to fill a ‘casual’ vacancy
How would a company remove an auditor?
By holding a general meeting, and a simple majority vote voting to remove them
What safeguards are in place for an auditor if they are being removed from their duties?
A specified notice period to prevent the resolution being suggested at short notice in order to influence the outcome of the vote
How would an auditor go about resigning from the company as auditor?
Issuing a written notice of the resignation and a statement of circumstances to the members
Are ISAs a legal requirement?
No
