Auditors Their duties and rights (What are the duties of auditors? (Duty…
Their duties and rights
What is it?
An audit is an examination of a company’s financial statements
prepared by the directors of the company.
An auditor is an independent professional person who is qualified to
audit a company’s financial statements.
Who can be an auditor?
A qualified accountant or firm of accountants can act as a company’s
What does an audit involve?
Seek to understand the company’s business
Test that the company’s internal controls are effective
Write and issue the auditor’s report to the members of the company
Evaluate any significant events that have occurred since the
financial statements were prepared
When is an audit required?
Being up to date with its filing obligations with the Registrar
Having no more than 50 employees, on average
Having no more than €4.4 million as its balance sheet total
What are the duties of auditors?
Duty to provide an audit report
disclaimer of opinion
Duty to report indictable offences
Duty to explain reasons for resigning
Duty to report failure to maintain proper books of account
Duty to exercise professional integrity
What are the rights of auditors?
Access the books and accounts of the company and its
Access information and explanations from the company’s directors
Be notified of company general meetings and attend and address
Explain at a general meeting the circumstances of any proposal to
remove them as auditor and to contest that removal