Topic 2 Audit Regulation: Companies Act 2016

Sec 261: Auditor’s Statement

Company Auditor

Sec 263: Approved Company Auditor

- Benefits of an audit performed by an approved company’s auditor

- Good Criteria

Disqualification

Sec 264: Disqualification

Duties and Powers

Sec 266 (1)-(3): Duties of auditors

Sec 266 (4)-(7): Powers of auditors

Appointment 

Sec. 267: Appointment of Auditors (private company)

Sec. 271: Appointment of Auditors (public company)

Remuneration

Sec 274: Auditor’s Remuneration

Removal

Sec 276: Resolution to Remove auditor from office

Sec 277: Special notice required for resolution to remove auditor

- Step-by-step for a special notice to remove an auditor

Resignation

Sec 281 & 282: Resignation of auditor

Sec 283: Rights of resigning auditor

Reasons for casual vacancy

1. Resignation of the auditor : casual vacancy arises upon resignation s.281 
2. Removal by members (before term ends) : creates a vacancy s.276, s.277, s.278
3. Disqualification/ineligibility (cannot be appointed or continue acting), s.264, s.263
4. Death or incapacity of the sole-practitioner auditor
5. Firm ceases to exist/merger without continuity of appointment
6. Failure of re-appointment at the AGM (public company), s.271(2) 

Who fills the casual vacancy (for completeness)

1. Private company: Board may appoint an auditor to fill a casual vacancy, s.267(3)(b)
2. Public company: Board may appoint an auditor to fill a casual vacancy, s.271(2)(b)