ACCA AA Syllabus A. Audit Framework And Regulation - Auditor Removal - Notes ^{4 / 8}

So what are the ways an Auditor can be removed?

1. By majority at a general meeting (but a specified notice period must be given of the resolution to prevent it being ‘sprung’ on the meeting)

2. The auditor may resign (but must submit a statement outlining the circumstances of their resignation)

What does the Auditors have to do on Removal/Resignation

They have 3 responsibilities as follows:

1. Deposit statement of circumstances connected with removal/resignation at the company’s registered office.

2. If there are no circumstances, a statement stating this.

3. Reply promptly to requests for clearance from new auditors.

And what rights do they have when resigning?

Just the 2 rights to remember here..

1. To request an extraordinary general meeting to explain the circumstances of the resignation

2. To require company to circulate notice of circumstances relating to resignation