Problem1. Alwaysfast Ltd was established on 1 July 2007 and its activity is to make deal in computer and accessories. The directors are uncertain as to their responsibilities, and the nature of their relationship with external auditors. The audit partner has asked you to visit the client and describe to the directors the more fundamental aspects of the accountability.

You are needed to describe to the directors of Alwaysfast Ltd:

(a)  Why there is a need for audit?

(b)  How the auditor of company might be appointed under the Companies Act.

(c)  What are the auditor’s right are under Companies Act.

Problem2. Corporate governance is the key area for auditors to understand since this now gives impetus to the role of internal audit. Corporate governance concerns the way that the company is operated and directed, and in particular encompasses the operation of board and audit committee, as well as the whole control and risk management framework.

Required:-

(a)  Why has corporate governance had such an impact on the internal audit?