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problem1. describe the Companies Act requirements which tend to ensure the independence of auditors.

problem2. The managing director of G Ltd, a company with annual turnover exceeding Rs 50 m, has approached you with a view to appointing your firm as auditors to company.  Your appointment would result in the replacement of company’s present auditors whom the managing director has indicated would be unwilling to resign.

You are required to prepare formally to managing director, setting out:

a) The statutory procedures required to remove the existing auditors.

b) The statutory powers of the directors to hire new auditor.

c) The statutory rights afforded to the existing auditors in the event either of their resignation or of proposal to remove them.

Business Law & Ethics, Finance

  • Category:- Business Law & Ethics
  • Reference No.:- M96139

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