Per the Company’s Act 2019 (Act 992), Auditors are appointed by the following process:

• The first auditors of companies are appointed by the directors who also fill in casual vacancies.
• When a company has no auditor for a continuous period of three months, the Registrar General may appoint an auditor for the company.
• By shareholders at Annual General Meeting when the appointment of existing Auditor ceases.

Per the Company’s Act 2019 (Act 992), Auditors are remunerated by the following process:

• When directors appoint an auditor the directors fix the fees for the period expiring at the next AGM.
• When the Registrar General appoints an auditor, the fees are fixed by the registrar general.
• By an ordinary resolution of the company or in manner by which the company may direct by an ordinary resolution.

• An auditor may resign under the following circumstances:
• In relation to fee matter
• When the management of the auditee and those charged with governance demonstrate a lack of integrity
• When audit firms can no longer maintain independence
• Irreconcilable difference between the client and Auditor
• When the client changes in size and nature and the Auditor no long have the competency to perform
• When the client is engaging in illegal activities.

(Any 5 points @ 1 mark each = 5 marks)

Section 134 sub section 3 of the Companies Act 1963 (Act 179) requires that the first Auditors of a company incorporated after the commencement of the companies act be appointed within 3 months of incorporation of the company or prior to the delivery to the registrar of the particulars required under section 27 of the act;      (2 marks)

• It also requires every existing company, without auditors to appoint auditors within three months after the commencement of the act;                       (2 marks)
• Sub section 4 (a) also empowers the directors to appoint the first auditors for the company and fill any casual vacancy in the office of the auditor. Sub section 4 (b) says that if a company shall have no auditors for a continuous period of three months, the registrar may appoint auditors;                 (2 marks)
• On the basis of the above the registrar is not right by rejecting Ofori Ansong and Co since 21st August 2019 to 10th October 2019 is less than three (3) months.                (1 mark)

• At any time before the first annual general meeting of a company, the directors of the company may appoint, or (if the directors do not make an appointment) the company at a general meeting may appoint, a person to be the auditor of the company, and any auditor so appointed shall, subject to this section, hold office until the conclusion of the first annual general meeting.
• A company shall at each annual general meeting of the company appoint a person to be the auditor of the company, and any auditors so appointed shall, subject to this section, hold office until the conclusion of the next annual general meeting of the company.
• Subject to subsections (7) and (8), the directors of a company may appoint an approved company auditor to fill any casual vacancy in the office of auditor of the company, but while such a vacancy continues the surviving or continuing auditor, if any, may act.
• An auditor of a company may be removed from office by resolution of the company at a general meeting of which special notice has been given, but not otherwise.
  An auditor appointed in pursuance of subsection (7) or (8) shall, subject to this section, hold office until the conclusion of the next annual general meeting of the company.
• If a company does not appoint an auditor as required by this section, the Registrar may on the application in writing of any member of the company make the appointment.
• Subject to subsection (7), a person shall not be capable of being appointed auditor of a company at an annual general unless he held office as auditor of the company immediately before the meeting or notice of his nomination as auditor was given to the company by a member of the company not less than twenty-one days before the meeting.
• Where notice of nomination of a person as an auditor of a company is received by the company whether for appointment at an adjourned meeting under subsection (7) or at an annual general meeting, the company shall, not less than seven days before the adjourned meeting or the annual general meeting, send a copy of the notice to the person nominated, to each auditor, if any, of the company and to each person entitled to receive notice of general meetings of the company.
• If, after notice of nomination of a person as an auditor of a company has been given to the company, the annual general meeting of the company is called for a date twenty-one days or less after the notice has been given, subsection (11) shall not apply in relation to the person and, if the annual general meeting is called for a date not more than seven days after the notice has been given and a copy of the notice is, at the time notice of the meeting is given, sent to each person to whom, under subsection (12), it is required to be sent, the company shall be deemed to have complied with that subsection in relation to the notice.