When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?
Correct answer: B. Apply to the court to have the proposal removed
- A. Circulate representations to members
- B. Apply to the court to have the proposal removed
- C. Speak at the AGM/EGM where the removal is proposed
- D. Receive notification of the AGM/EGM where the removal is proposed
Explanation
A proposed removal allows the auditor to circulate written representations, receive meeting notice, and speak at the meeting. The auditor is not generally permitted to apply to court simply to have the removal proposal withdrawn.
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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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