The term of the auditor ship of first auditor would be from the date of appointment till________?
Correct answer: B. the conclusion of first annual general meeting
- A. the conclusion of statutory meeting
- B. the conclusion of first annual general meeting
- C. the conclusion of next annual general meeting
- D. the date of removal
Explanation
The first auditor holds office from appointment until the conclusion of the company’s first annual general meeting, when the shareholders appoint or confirm the continuing auditor. The statutory meeting is not the normal endpoint of this term.
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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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