Duties
of the Auditor
The statutory duties of the auditor are as
follows:
a) To make a report to the members of the
company on all accounts and financial statements laid before the members in
Annual General Meeting; 35
b) To state whether the financial statements
of the company (or group of companies) show a true and fair view and have been
properly prepared in accordance with the provisions of the code;
c) To consider if any information in the
Directors’ Report is consistent with the accounts and to report the facts if
there are any of such instances;
d) To form an opinion as to whether proper
accounting records have been kept by the company; proper returns adequate for
their audit have been received from branches not visited by them; the company’s
Statement of Financial Position and its Statement of Comprehensive Income are
in agreement with the accounting records and returns, and such information and
explanations as he thinks necessary for the company’s officers. (these matters
are reported on by “exception only” and that where the auditor is not
satisfied, no mention is made in the report);
e) To outline in his report, details of
directors’ remuneration, loans to officers, transactions involving directors
and other connected persons (if not disclosed in the financial statements
themselves);
f) To
make other special reports in various circumstances; and
g) To make a “statement of circumstances” when
he ceases to hold the office for any reason.
The Rights of the Auditor
The statutory rights of auditors are as
follows:
a) Right of access at all times to books of
accounts and vouchers of the company;
b) Right to acquire from the officers,
including the directors of the company, such information and explanations as
are deemed necessary for the performance of the auditors’ duties;
c) The right to attend any general meeting of
the company and to receive notices of, and other communications relating to any
general meeting on any part of the business of the meeting which concerns them
as auditors;
d) The right to apply to the court for
directions in relation to any matter arising in connection with the performance
of their functions under the Code, and to have the costs of any such
application met by the company, unless directed by the court;
e) The right to be notified in writing in the
event of an intended resolution to remove them or appoint some other persons in
their stead, to submit a written statement which must be circulated to members
and be read, if so required, at the general meeting;
f) The right, before accepting appointment as
auditor of a company, to communicate with a retiring auditor, if any; and
g) The right to contract with a company, in
addition to their statutory duties to the members of the company, expressly or
by implication, to undertake obligations to the company in relation to the
detection of defalcations, and advice on accounting, taxation, raising of
finance and other matters
ARTICLE BY MONDAY DESMOND
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