The Auditor
von Farah Darr
1. The directors may appoint the first auditor of the company. The auditor holds office until the end of the first general meeting. Accounts are laid before the members.
2. The members can reappoint the auditor or appoint a different auditor to hold office from the end of the meeting until end of the next meeting where accounts are laid
3. There has been a growing focus on the relationship between the audit firm and the Co. about good governance, objectivity of an auditor and market practices
4. EU & CMA Legislation Key points
4.1. Listed companies are required to put their statutory audit services engagement to tender every 10 years
4.1.1. To change auditor at least once every 20 years
4.1.1.1. Cap the amount of permitted non-audti services the auditor may perform to 70% of the worldwide statutory audit fee
4.1.1.1.1. State in annual report if audit engagement has not been put to competitive tender in the last 5 years, when they next intend to put audit engagement to tender