Emali Co. Ltd. has undergone a period of substantial growth following
its establishment five years ago. At the last annual general meeting
Smith & Co. Associates, a tow-partner firm of Certified Public
Accountants were re-appointed as auditors. However, Smith & Co.
Associates have decided that they do not have the necessary resources to
audit the enlarge company.
Required:
a)Briefly, explain how Smith & Co. Associates may resign from its
appointment before the next annual general meting.
(4 marks)
b)How any a casual vacancy arising from the resignation of present
auditors be filled and what procedures are necessary before the
company‟s next annual general meeting at which the appointment will
be presented for ratification? (7 marks)
c)Outline the steps the prospective auditor must take before deciding
whether or not to accept the nomination as an auditor.
(9 marks)