chapter  10
20 Pages

Directors

This chapter explores the appointment of auditors of a private company and the default power of the Secretary of State. The 2014 edition repeats the 2012 edition of the UK Corporate Governance Code in providing that FTSE 350 companies should put the external audit contract out to tender at least every ten years. The assessments were frauds, which had been perpetrated by a manager to make the company appear to flourish by exaggerating the quantity and value of cotton and yarn in the company's mills. In the absence of much British authority, transatlantic experience is instructive as the accounting standards adopted in Britain and the USA are similar. The Institute of Chartered Accountants of England and Wales recommends that auditors clearly limit their duty to the company's members as a body. The auditors have statutory protection if they are to be removed from office. The chapter provides for liability limitation agreements.