You are an audit senior in a firm of practicing accountants and your manager has gone
out for an urgent meeting with a partner. Mr. Charo, a manager with Charo and
Company, a wholesale business has come to your office with a request that your firm
becomes their auditors.
Required:
a) Describe to Mr. Charo the legal, ethical and practical factors your firm would
consider before accepting the appointment. (10
marks)
b) Explain to Mr. Charo the qualification and disqualification of an accounting firm
under the provisions of the Companies Act to become auditors. (10
marks)