How long is the auditor's term of office?
Correct answer: C. Until the next AGM (Annual General Meeting)
- A. Until the audit is complete
- B. Until the financial statements are complete
- C. Until the next AGM (Annual General Meeting)
- D. Until the directors remove them Source Heavy Machinery
Explanation
An auditor normally remains in office until the conclusion of the next AGM, when members may reappoint or replace the auditor. The term is not limited to the completion of the audit or financial statements.
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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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