ABSTRACT
At each general meeting all companies must appoint one or more auditors. The auditor, who must be a member of a recognized body of accountants, has to examine the accounts in order to find and report the true financial position of the company. The purpose of an audit is primarily to enable shareholders to monitor the directors’ stewardship of the company as well as to give creditors an opportunity to check that the company’s position has not deteriorated. This chapter acquaints students with the appointment requirements of auditors and more importantly to make them appreciate the duties expected of auditors and the requisite level of skill demanded of them. A dormant company need not appoint auditors provided that it is classed as a small private company not engaged in banking, insurance or financial services. An auditor, during his term of office, is under a statutory duty to report to members on accounts presented to the company.
