Friday, June 2, 2017

QUALIFICATION OF AN AUDITOR

QUALIFICATION OF AN AUDITOR
Section 358 (1) CAMA 1990 A person shall not be qualified for appointment as an auditor of a company for the purpose of this unless he is a member of ICAN or ANAN.

Section 358 (2) none of the following persons shall be qualified for appointment as auditors of a company.
a)     An officer or servant of the company.
b)    A person who is a partner or in the employment of an officer or servant of the company.
c)     A person or firm who or offers to the company professional advices in a consultancy capacity in respect of secretarial, taxation or financial management.
d)    A body corporate, and for this purpose an auditor of a company shall not be regarded as either an officer or servant of it.

SECTION 358 (3) A person shall also not qualify for appointment as an auditor of a company if he is under subsection (6) of this section, disqualified for appointment s auditor of any other body corporate which is the company's subsidiary or holding company be e disqualified. Section 358 (4) notwithstanding subsection (1), (2) and (3) of this section, a firm is qualified for appointment as auditor of a company if, and only all the partners are qualified for appointment as auditor of it.

SECTION 358 (5) No person shall act as auditor of a company at a time when he knows that he is disqualified for appointment to that office and if are auditor of a company to his knowledge becomes so disqualified • during his office, he shall there vacate this office and give notice in writing to the company that he: has vacated it by reason of that disqualification.

SECTION 358 (6) A person who acts as auditor contravention of subsection (5) of this section if he fails without reasonable excuse to give notice of vacating his office as required by that subsection should be guilty of an offense and liable to a fine of N500 and for continued contravention to a daily default fine of N50.

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