Section 136
of the Companies Code outlines the duties and rights of the auditors. We take a
brief look at the duties and rights of the auditors of a company.
1.
Duties of auditors
The
code makes it clear that the auditors should not be seen as officers or agents of
the company. The duties of the auditors are as outlined below:
1.
To express opinion on the financial
statements examined;
2.
Where the auditors issued qualified
report, the auditors should include reasons for such qualification with factual
position;
3.
To include in the report of the
company such matters as directed by the regulatory authorities;
4.
To attend those general meetings
of the company, in which the financial statements and the auditors' report are
to be considered;
5.
To make report for inclusion in
prospectus;
6.
To make report on declaration of
solvency in case of voluntary winding up;
7.
To give the company a statement of
circumstance or statement of no circumstance exist when resigning and;
8.
To exercise reasonable care and
skill in carrying out his duties and make such inquiries as considered
necessary.
2.
Rights of Auditors
The Companies
Code gives some exclusive rights to the auditors. Some of the rights of the auditors are as
follows:
1.
Right of access to books of
account and vouchers;
2.
Right to receive information and
explanations;
3.
Right of access to books and
papers of branch;
4.
Right to receive notices of
general meetings and to attend those meetings;
5.
Right to make representation
where another person is being appointed as auditor;
6.
Right
to apply to the Court for directions relating performance of the auditors’ duties;
7.
Right
to seek and use the opinion or services of experts and;
8.
Right
to provide other services for audit client.
Please feel free and post your comments below.
Please visit us on facebook to download the lecture notes.
<< Previous Lesson
No comments:
Post a Comment