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Greetings Tutor, I hope you are doing well. I was going through the topic of Auditors.
And it has been provided that
“At the time of resignation, if the auditors have deposited a statement of circumstances, they may:
a) Circulate a statement of reasonable length to the Members.”Can you tell me what exactly is a Statement of Circumstances and what is Statement of Reasonable Length?
Are they both one and the same thing or they are different? and in case they are different how?
Hi Vikas
A statement of circumstances is a statement of those issues that have caused the auditor to resign and these are matters that the auditor believes should be brought to the attention of members and or creditors.
A statement of reasonable length is, as the title suggests a statement. And that statement shall be of a reasonable length. OK! Now we’re getting somewhere. The only issue now is ‘how long is reasonable?’
This is an area where English Law excels! Normally, ‘reasonable’ is determined by ‘what ever is reasonable in the circumstances’. Not helpful?
But I believe that, in this context, reasonable length is ‘not exceeding 1,000 words’
Are you OK now?
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