which of the following groups of persons appoints auditors? ,The following groups of persons appoint auditors:
- Shareholders: The shareholders of a company appoint the auditors at the annual general meeting.
- Audit committee: The audit committee of a company appoints the auditors. The audit committee is a committee of the board of directors that is responsible for overseeing the company's financial reporting and internal controls.
- Board of directors: The board of directors of a company appoints the auditors in the absence of an audit committee.
The specific group of persons that appoints the auditors will vary depending on the type of company and the jurisdiction in which it is incorporated. For example, in some jurisdictions, such as the United States, public companies are required to have an audit committee, and the audit committee is responsible for appointing the auditors. In other jurisdictions, such as the United Kingdom, public companies are not required to have an audit committee, and the shareholders appoint the auditors at the annual general meeting.
It is important to note that the auditors must be independent of the company and its management. This means that the auditors should not be appointed by the company's management or have any financial or personal relationships with the company or its management.
Here are some examples of how auditors are appointed in different types of companies:
- Public companies: In most jurisdictions, public companies are required to have their financial statements audited by an independent auditor. The auditors are typically appointed by the audit committee of the board of directors.
- Private companies: Private companies are not typically required to have their financial statements audited. However, many private companies choose to have their financial statements audited to improve the credibility of their financial statements and to attract investors. Auditors are typically appointed by the board of directors of a private company.
- Non-profit organizations: Non-profit organizations may or may not be required to have their financial statements audited, depending on the jurisdiction in which they are incorporated and the type of non-profit organization. Auditors are typically appointed by the board of directors of a non-profit organization.
I hope this information is helpful.
which of the following groups of persons appoints auditors? ,Correct option is E)
A person shall be eligible for appointment as an auditor of the company if he is a qualified Chartered Accountant.
Below are the persons who are not eligible for appointment of auditor of the company:
A body corporate
An officer or employee of the company
A person who is a partner of an officer or employee of the company
A person holding securities having voting rights
A person or a firm who is having business relationship directly or indirectly
A person whose relative is a director or key personnel in the company
A person who is indebted to company for an amount exceeding Rs.1000
