• The rights to receive a copy of any written resolution proposal if it concerns him
• Where a resolution being proposed which concerned him the right to attend and be heard at any such meeting.
• Right to make written representation in case he is being replaced.
• A right to hold office till the close of a general meeting if a proposal is made to remove him.

(1 mark each for any 3 valid point made)

• Section 133 (a) confers upon the auditor the right of access to the records, books, of accounts and vouchers of the company. Books include minutes books of general meetings as well as meetings of the board.
• This right has been conferred upon the auditor to enable him to express an opinion on financial statement which are derived from the records, books of accounts and vouchers. Under the 5th schedule of the companies’ code 1963, Act 179, auditor has a duty to report whether the company’s balance sheet and profit and loss account are in agreement with books of accounts and return.
• In the present case, auditors have been denied the access to minute books. The auditors need minutes books of the meetings of the board and shareholders to verify/vouch transactions and decisions.
• Such a denial constitute a limitation on scope of audit. He may extend audit procedures and express a qualified opinion or disclaimer of opinion in his audit report.

• Preparation of financial statements. The directors have a legal responsibility to prepare financial statements giving a true and fair view. This implies that they have been prepared in accordance with the relevant IASs and IFRSs. The auditor’s duty is to carry out an audit (according to the International Standards on Auditing) and to give an opinion on whether a true and fair view is given (or whether the financial statements present fairly, in all material respects, the financial position of the entity). In doing this they will have to consider whether the relevant accounting standards have been properly followed.
• Estimates and judgements and accounting policies. The directors have the responsibility for making the estimates and judgements underlying the financial statements and for selecting the appropriate accounting policies. The auditor’s responsibility is to assess the appropriateness of the directors’ judgements and to modify the audit opinion in the case of any disagreement causing the auditors to conclude the financial statements are not free from material misstatement.
• Fraud and error. The directors have a duty to prevent and detect fraud and error. This is a duty they owe to the shareholders and there is no ‘materiality’ threshold attached to their duty. The auditor is responsible (under ISA 240) for obtaining reasonable assurance that the financial statements are free from material misstatement including material misstatement caused by fraud. The auditor is responsible for maintaining professional scepticism throughout the audit, considering the possibility of management override of controls. The audit team must discuss how and where the entity’s financial statements may be susceptible to material misstatement due to fraud, including how fraud might occur.
• Disclosure. The directors are responsible for disclosing all information required by law and accounting standards. The auditor’s responsibility is to review whether all the disclosure rules have been followed and whether the overall disclosure is adequate. There are certain pieces of information, which, if not disclosed by the directors, must be disclosed by the auditor in his report. Examples of this are related party transactions and transactions with directors.
• Going concern. The directors are responsible for assessing whether it is appropriate to treat the business as a going concern. In doing this they should look at forecasts and predictions for at least twelve months from the reporting date. They should also disclose any significant uncertainties over the going concern status of the company. The auditors’ responsibility is to consider whether there are any indicators of going concern problems in the company, and assess the forecasts made by directors and decide whether the correct accounting basis has been used and whether there is adequate disclosure of significant uncertainties.

1. The primary duty of the auditor is to make report to be laid before shareholders at Annual General meeting
2. To ensure that information in the directors’ report is consistent with the account and to report therein.
3. To ensure the proper books of account has been kept and adequate returns from branches not visited by him.
4. Outline in this/her report about directors’ remuneration and other officers of the company.
5. To make a statement when removed from office.
Rights/Powers:
1. Right of access at all times to all books, documents and vouchers.
It is an offence punishable by a term of imprisonment, fine or both, if any officer or
a company makes a materially false statement either orally or in writing to the
Auditor or does not give the auditor the much needed freedom from all sorts of
Hindrances when he conducts his audit.
2. The right to demand from the directors and officers such information and explanations as he thinks necessary for the performance of his statutory duties.
3. The right to receive notices to attend and speak on matters that concern him as auditor.
4. The right to apply to the court for directions in relation to any matter arising in connection with the performance of their functions under the Code.
5. Right to ensure that before he/she is removed from office, due process is followed.

My duties as an auditor of a company as set out in the Companies Code are as follows:

• To make a report to the members on all Accounts laid before them at annual general meeting, Stating whether the Accounts – give a true and fair view and have been properly prepared in accordance with the provisions of the Companies Code.
• To investigate, and form an opinion on, whether: (a) Proper accounting records and returns have been kept and (b) the Accounts are in agreement with the accounting records and returns
• To modify any opinion on the financial statements if I cannot report affirmatively in respect of the requirements in the 5th schedule to the companies code.
• The Companies Code requires that the auditors gives certain information on the remuneration of and other transaction of the company’s directors, if these are not given in the accounts
  My rights as auditor as mentioned in the Companies Code are:
• Right of Access at all times to the books, accounts and vouchers of the company
• Right to such information and explanation as l think necessary for the performance of my duties
• Right to receive notice of, attend and speak at meetings of the members
• Right to apply to the court for direction on any aspect of his work.
• Right to communicate with the previous auditor in the case of an initial audit and request any information l may need for my assignment.
• Right to ensure that before being removed, the provisions in the Companies Code have been followed.