(2) If a corporation is appointed auditor of a corporation, only partners who are statutory auditors are authorized by the corporation to act and sign on behalf of the corporation. For the purposes of paragraph (i) of paragraph (3) of § 143, the auditor`s report for fiscal years beginning on or after April 1, 2015 must indicate the existence of an adequate system of internal financial control and its operating effectiveness: If an auditor suffers any of the disqualifications after appointment, he or she shall, from the date on which he or she was disqualified, request that: as he left his position as auditor. Private corporations can also pass an election resolution that eliminates the need to appoint an auditor each year. In that case, the statutory auditor already appointed shall remain in office without further formalities until a decision is taken on the reinstatement of the annual appointment or his dismissal as auditor. This article explains the role of a business auditor, what types of companies must appoint an auditor, and under what circumstances an auditor is not required. (g) a person employed on a full-time basis elsewhere or a person or member of an entity appointed as statutory auditor, if those persons or members are acting as statutory auditors of more than twenty entities at the time of appointment or renewal of the mandate; A company`s auditors may only provide services approved by the company`s board of directors or audit committee. However, an entity`s auditor may not provide the following services to a company, its holding company or its subsidiary: These are entities that, according to the Secretary of State, have regulations designed to ensure that auditors have the highest level of professional competence. Each recognized body has strict rules and a disciplinary code governing the conduct of its accredited auditors. The five recognized bodies are: (1) A person may be appointed auditor only if he exercises his profession. (i) any person whose subsidiary, affiliate or other form of business provides consulting and specialized services under section 144 at the time of appointment. Each corporation is required by law to appoint one or more auditors. Section 357 of the Companies and Related Issues Act (CAMA) requires each corporation to appoint one or more auditors at each annual general meeting by approving 75%, i.e.
three-quarters of the members present and voting at the general meeting. The auditors appointed at the Annual General Meeting shall remain in office until the next Annual General Meeting. (f) a person whose relative is employed by the company in a capacity, or If your accountant does not fall into one of the above categories and has a recent audit certificate issued by a recognised supervisory authority, he or she may act as the company`s statutory auditor. a person who provides, directly or indirectly, any of the services referred to in section 144 to the Société or its holding company or subsidiary. The Securities and Exchange Commission`s 2014 Corporate Corporate Governance Code for Public Companies (the SEC Code) also restricts the appointment of auditors for publicly traded companies. Section 33 of the SEC Code provides that members of a company may remove an auditor at any time during his or her term of office or decide not to reappoint him or her for another term. They must inform the company 28 days in advance of their intention to take a decision to dismiss the auditor or to appoint another person to a general meeting. A copy of the notice of the proposed resolution must be sent to the auditor, who then has the right to provide a written response and request that it be sent to the shareholders of the company. IndiaFilings.com is committed to helping entrepreneurs and small business owners start, manage and grow their businesses at an affordable price.
Our goal is to educate the entrepreneur on legal and regulatory requirements and to be a partner throughout the business lifecycle, supporting the business every step of the way to ensure it is compliant and continuously growing. In recent years, several corporate scandals resulting from financial negligence and generally poor corporate governance practices have highlighted the importance of the role of statutory auditors and their independence in the performance of their duties. An auditor is a qualified independent person or firm engaged by a corporation to review its accounts and financial statements to confirm the corporation`s financial position. (c) a person who is associated or employed by an officer or employee of the corporation; (c) the term “company” includes any legal person; According to CAMA, the requirements for the appointment of auditors apply to both public and private companies, and the law states that an audit must be conducted in accordance with the standard requirements of the Law on the Institute of Chartered Accountants of Nigeria (ICAN). Although most chartered accountants appointed by Nigerian companies are chartered accountants by the Institute of Chartered Accountants of Nigeria (ICAN) or members of the Association of National Accountants of Nigeria (ANAN), the law does not require minimum professional qualifications for chartered accountants. However, it explicitly excludes the following persons from appointment as auditors of a company: It also explains the procedure for appointing and dismissing auditors. (b) the composition of the board of directors of a corporation is deemed to be controlled by another corporation if, in exercising a power exercised by the corporation in its sole discretion, that other corporation may appoint or remove all or a majority of the directors; An auditor conducts a review of a corporation`s financial statements and provides the owners (shareholders or members) with an independent report indicating whether the financial statements have been properly prepared in accordance with the Companies Act. A statutory auditor must be independent of the company and therefore a person cannot be appointed statutory auditor if: The report shall indicate whether, in the opinion of the auditor, the company`s financial statements give a true and fair view of its position. Yes.
However, there is nothing wrong with appointing an auditor for other purposes, such as bookkeeping or preparing the tax return, provided that he is not involved in the management of the company. If an auditor leaves office for any reason, he must file a declaration at the registered office of the company. The declaration must set out all the circumstances relating to his termination of office which, in his opinion, should be brought to the attention of the partners and creditors of the company. 4) A person who pays the company for an amount greater than Rs. 1000. (i) commercial transactions which have the character of professional services which may be provided by an auditor or firm of auditors under the Chartered Accountants Act and the Chartered Accountants Act, 1949 and any rules or regulations made thereunder; (ii) business transactions that take place in the ordinary course of the Company`s business at arm`s length – such as the sale of products or services to the Auditor as a customer in the ordinary course of business by companies active in telecommunications, airlines, hospitals, hotels and similar activities.
