Kwame nkrumah university of science and technology institute of distance learning



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auditing Assign
6. DISQUALIFICATION OF THE AUDITOR
ACT 138 (2) A person is disqualified for appointment as an auditor, if that person is
(a) an officer of the company or of an associated company;
(b) a partner of, or in the employment of, an officer of the company or of an associated company;
(c) an infant;
(d) found by a court of competent jurisdiction to be a person of unsound mind;
(e) a body corporate, except that a member of an incorporated partnership may be appointed in the manner provided by subsection (2) of section 139;
(f) one in respect of whom an order has been made under section 177 so long as the order remains in force unless leave to act as an auditor of the company concerned has been granted by the Court in accordance with that section;
(g) an undischarged bankrupt, unless that person has been granted leave to act as an auditor of the company concerned by the Court by which the adjudication as bankrupt was made; or
(h) for the time being disqualified from acting as an auditor of a company by order of the Registrar under subsection (4).


7. APPOINTMENT OF AN AUDITOR
ACT 139. (1) A person shall not be appointed as an auditor of a company unless, that person
(a) has, before the appointment, consented in writing to be appointed; and
(b) is duly qualified in accordance with section 138.
(2) A partnership firm may be appointed, in the name of the firm, as an auditor of a company, but, whether or not that firm is a body corporate, the appointment shall be deemed to be an appointment of the partners of the firm who, at the time of the appointment, are duly qualified.
(3) Despite a contrary provision in the constitution of a company, an auditor shall be appointed by ordinary resolution of the company and not otherwise.
(4) For the purposes of subsection (3),
(a) the directors may appoint the first auditors of a company and may fill a casual vacancy in the office of auditor; or
(b) if a company does not have an auditor for a continuous period of three months the Registrar may appoint an auditor for that company.
(5) An existing auditor shall continue in office until,
(a) that auditor ceases to be qualified for appointment;
(b) that auditor resigns from office by notice in writing to the company;
(c) an ordinary resolution is duly passed at an annual general meeting in accordance with section 141 removing that auditor from office or appointing any other person in place of that auditor as from the conclusion of the annual general meeting; or
(d) the tenure of that auditor ends; and when a casual vacancy occurs in the office of the auditor, the surviving or continuing auditor may act.
(6) Within fourteen days after the occurrence of a change in the auditors of a company, the company shall give notice of the change in the prescribed form to the Registrar for registration. (7) For the purposes of subsection (6)
(a) where a partnership firm has been appointed auditor in the name of the firm, the name and business address of the firm shall be given to the Registrar, and
(b) a change in the constitution of the firm or of the partners in the firm with respect to an auditor of the company is not a change in the auditors.
(8) Before accepting the appointment as an auditor of a company, the auditor shall communicate with the retiring auditor and request the retiring auditor to make any representations and supply information about the company.
(9) The retiring auditor shall respond to the request and supply the requisite information.
(10) Where a company contravenes a provision of this section or describes as auditor of the company a person who has not been duly appointed, the company and an officer of the company that is in default are liable each to pay to the Registrar an administrative penalty of two hundred and fifty penalty units.
(11) An auditor shall hold office for a term of not more than six years and is eligible for appointment after a cooling-off period of not less than six years.



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