Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?
Correct answer: A. The shareholders in a general meeting
- A. The shareholders in a general meeting
- B. The managing director
- C. The board of directors in a board meeting
- D. The audit committee Hire An Accountant
Explanation
After the first appointment, the shareholders generally appoint or reappoint the auditor in a general meeting, commonly at the AGM. The board or audit committee may recommend an auditor but does not normally make the statutory appointment.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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