Get premium membership and access questions with answers, video lessons as well as revision papers.
- An auditor can only be removed by shareholders regardless of the party that appointed him.
- If any shareholder wishes to nominate another person in place of the existing auditor, he should give a special notice of 14 days to the company.
- The company would in turn send a notice to the retiring auditor within 14 days of the AGM.
- The retiring auditor would then have to send a written representation to the company. The company would then have to circulate the representation to shareholders provided that it is received in good time before the AGM.?
- Nevertheless, if the representation cannot be sent to shareholders, the auditor will have to read them at the AGM.?
- However if the representations are defamatory in nature then the company may refuse to send them to shareholders, especially so if the court is satisfied, on application of the company or any aggrieved party that the right representation have been misused or abused by the auditor. The court may order the auditor to pay expenses incurred by the company in this respect.?
- The auditor being removed has the right to attend AGM, discuss his removal and also has equal right to speak at the meeting. This is to prevent directors from removing auditor without reason to the shareholders as to the reason behind his removal.?
- If it is the first auditor of the company appointed by the directors to hold office until conclusion of the next AGM, such may be removed before expiry of his term of office, provided a notice of 23 days has been given to him.
Wilfykil answered the question on February 22, 2019 at 11:48
- Identify the program controls which should be inbuilt in a computerized accounting system(Solved)
Identify the program controls which should be inbuilt in a computerized accounting system
Date posted: February 22, 2019. Answers (1)
- State and control objectives generally associated with the processing of data in a computerized accounting environment.‘(Solved)
State and control objectives generally associated with the processing of data in a computerized accounting environment.‘
Date posted: February 22, 2019. Answers (1)
- State and briefly explain an auditor‘s responsibilities with regard to the detection of errors and frauds(Solved)
State and briefly explain an auditor‘s responsibilities with regard to the detection of errors and frauds
Date posted: February 22, 2019. Answers (1)
- (i) What is an audit peer review?
(ii) State and briefly explain the objectives of an audit peer review(Solved)
(i) What is an audit peer review?
(ii) State and briefly explain the objectives of an audit peer review
Date posted: February 22, 2019. Answers (1)
- Suggest six control measures that would help reduce the control risk associated with tangible fixed assets.(Solved)
Suggest six control measures that would help reduce the control risk associated with tangible fixed assets.
Date posted: February 22, 2019. Answers (1)
- Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets.(Solved)
Explain the assurances that an auditor seeks to obtain in the audit of tangible fixed assets.
Date posted: February 22, 2019. Answers (1)
- Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small...(Solved)
Bafu Ltd., a private limited company, manufactures a wide range of bathroom fittings. These fittings are made from steel components which are chromed in small vats. The steel components are sourced from outside suppliers. The year end stock mainly consists of these steel components and finished items. As at 31 October 2004, the total stock was valued at Sh. 6,048,000 out of total assets of Sh. 19,200,000. This stock figure was obtained by a physical count as at 31 October 2004, and valuation by reference to purchase invoices and manufacturing cost estimates.
Required:
With reference to each of the matters listed below, state the work you would do to conclude whether the amount attributed to stock is fairly stated.
(a) Quantities
(b) Identification of stock items
(c) Condition of stock items
(d) Cut-off procedures
(e) Valuation of stock
Date posted: February 22, 2019. Answers (1)
- List any four advantages of standardized audit working papers(Solved)
List any four advantages of standardized audit working papers
Date posted: February 22, 2019. Answers (1)
- Identify the type of information audit trainees should include in the audit working papers.(Solved)
Identify the type of information audit trainees should include in the audit working papers.
Date posted: February 22, 2019. Answers (1)
- Provide audit trainees with guidelines on how they should prepare audit working papers.(Solved)
Provide audit trainees with guidelines on how they should prepare audit working papers.
Date posted: February 22, 2019. Answers (1)
- Explain the importance of audit working papers.(Solved)
Explain the importance of audit working papers.
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain the statutory and ethical matters you would consider before accepting appointment as an auditor of a company(Solved)
Identify and briefly explain the statutory and ethical matters you would consider before accepting appointment as an auditor of a company
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain any four inherent limitations of an internal control system(Solved)
Identify and briefly explain any four inherent limitations of an internal control system
Date posted: February 22, 2019. Answers (1)
- What purpose does an internal control system serve in an organization?(Solved)
What purpose does an internal control system serve in an organization?
Date posted: February 22, 2019. Answers (1)
- Identify and briefly explain the three key elements of a good internal control system.(Solved)
Identify and briefly explain the three key elements of a good internal control system.
Date posted: February 22, 2019. Answers (1)
- In the context of the Companies Act (Cap. 486), state the rights of an auditor(Solved)
In the context of the Companies Act (Cap. 486), state the rights of an auditor
Date posted: February 22, 2019. Answers (1)
- Outline the professional guidelines that would assist the external auditor in avoiding being unduly dependent on a single client(Solved)
Outline the professional guidelines that would assist the external auditor in avoiding being unduly dependent on a single client
Date posted: February 22, 2019. Answers (1)
- Identify any four circumstances under which an interim audit would be ideal.(Solved)
Identify any four circumstances under which an interim audit would be ideal.
Date posted: February 22, 2019. Answers (1)
- Explain how you would use a computer audit programme to verify the year-end debtors balances(Solved)
Explain how you would use a computer audit programme to verify the year-end debtors balances
Date posted: February 22, 2019. Answers (1)
- Explain the meaning of the following terms in relation to audit reports.
(i) Limitation in the scope of the audit.
(ii) Emphasis of matter(Solved)
Explain the meaning of the following terms in relation to audit reports.
(i) Limitation in the scope of the audit.
(ii) Emphasis of matter
Date posted: February 22, 2019. Answers (1)