Appointment of an auditor
Auditor appointment is the selection and formal appointment of an auditor under applicable law, governance rules and engagement procedures. The appointing authority, eligibility, shareholder rights and removal rules vary by jurisdiction. The prospective auditor also evaluates acceptance, independence and engagement preconditions.
Worked example
A company follows applicable appointment rules and the proposed auditor checks independence and agrees the engagement terms.
Common mistake
An engagement letter records terms but is not necessarily the legal act of appointing the auditor.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |