Sinar Suria Sdn Bhd was recently incorporated. The comp any wishes to appoint an listener. The mount up of directors seek your advice on what qualifications auditors need and the procedure for their appointment. Advise them. (8 marks)
In smart set to protect the interest of shareholder of the company, Companies Act ply a compulsory appointment of an auditor in order to check the activity of the company and to report the activities or affairs to shareholders. Auditor is an independent person/persons that will give true and fair view of the companys activities.
To be a companys auditor, the person or the firm must(prenominal)iness be an sancti angiotensin-converting enzymed company auditor.
Under Section 8(1), any person may apply to the minister to be approved as a company auditor.
Section 8 (2) states that the government minister may approve the applicants application if he has a good character and competent to perform duties of auditor
This scratch requires a company to appoint an approved company auditor.
clear company auditor is one that has been approved by government minister of Finance to act as auditor.
He has the necessary qualification, which has a good character and competent to perform the duties of an auditor to a lower place Companies Act.
The auditor must be registered as a earthly concern accountant with MIA.
Under Section 14(3) of Accountant Act, MIA will bet applicant if the person is at least 21 days old.
Moreover, applicant must have passed the final examination in accounting.
Lastly, applicant must be a member of one of the specified professional bodies under Section 14(1)(a) of Accountant Act.
consort to Section 9(6) of Companies Act, an auditor or audit firm must give writing assent to a company ahead the company can propose him or them as auditor of the company. According to this section, Sinar Suria Sdn Bhd must obtain a writing consent from their candidates before appointing them as auditor of the company.
Section 172(1) of Companies Act...If you want to relieve oneself a full essay, order it on our website: Ordercustompaper.com
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