Unit 12 - Accounting

Question 1

What must a financial statement include ?

Answer 1

• Balance Sheet.
• Income Statement.
• Audit or Independent Review Statement .

Question 2

What is the deadline of filing an AFS ?

Answer 2

• 6 months after financial year-end to prepare the AFS.
• Financial year starts from the date of incorporation and ends within 15 months.

Question 3

Discuss audit.

Answer 3

• Required for public companies and State-owned Companies (SOC).
• Other profit companies and Non-Profit Companies (NPC) must have an audit only if required by regulations.

Question 4

What are the duties of a
secretary ?

Answer 4

• Ensure compliance with legal requirements (e.g., filing annual returns).
• Maintain corporate records.
• Ensure meetings are conducted in compliance with the MOI and Companies Act.

Question 5

Who must appoint an auditor ?

Answer 5

• Private companies, SOC, and certain other private companies.
• Auditors must be independent and cannot have been directors or employees in the past 5 years.

Question 6

Who must appoint an audit committee ?

Answer 6

SOC and LTD (public companies) must appoint an audit committee at the AGM.

Question 7

What are the duties of the audit committee ?

Answer 7

• Oversee the company’s financial reporting, ensuring transparency and integrity.
• Monitor the audit process and approve the auditor’s independence and scope.