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REMOVAL OF AUDITOR

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › REMOVAL OF AUDITOR

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Kim Smith.
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  • Author
    Posts
  • October 2, 2019 at 1:31 pm #547932
    storm
    Member
    • Topics: 14
    • Replies: 12
    • ☆

    Hi Sir,
    In BPP text page 24 on removal of auditors they say auditor rights can receive notice of and speak at a general meeting at which their term of office would have expired does ot mean after the auditor is removed he can still attend the general meeting i am not understanding…

    Thanks In Advance

    October 3, 2019 at 9:00 am #548003
    Kim Smith
    Keymaster
    • Topics: 135
    • Replies: 8312
    • ☆☆☆☆☆

    The auditor’s term of office expires at the AGM when the auditor’s report is delivered with the FS to the members. If directors are also majority shareholders they could remove the auditor at any time by ordinary resolution. To ensure that the auditor can “have his say” and keep the minority shareholders informed of relevant matters, the auditor has the right to “speak and be heard” at the AGM even if he has been removed. This basically means that the auditor isn’t silenced by his removal. This assumed knowledge of LW-ENG is unlikely to be examined in any detail in AA since there is only one AA syllabus which takes no account of national variations in law.

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