Our presentation in Auditing-Sem 3

3. DEFINE THE QUALIFICATIONS
NEEDED TO BE AN AUDITOR
 1.Is a member of the Malaysian Institute of Accountants(MIA) under the
Chartered Account category.In addition,the applicant has to be a member of
the MIA for at least one (1) year.
 2.Possess sufficient working experience in audit practice in a public accounting
firm:
 (a)The candidate must have at least 5 years of working experience prior to
application.The 5 years accumulative working experience can be obtained prior
to and/or after becoming a Chartered Accountant of the MIA.
I. At least 3 years must be in audit work.
II. At least 1 years out of the above 3 years shall be in an audit supervisory
role.The audit supervisory role is defined as being reponsible for audit
management including consultation with audit partners and has experience in
giving opinions for financial statement and be directly involved in audit
planning.
 .

4. (b)Candidates who has left audit practice,but still within a 3 year period
prior to the application to be approved company auditors, are still
eligible to apply.
(c) For candidates who have left audits practice for more than 3
year,they must work for at least 1 year in audit in the Malaysian
environment.
4.Candidates are required to attend the “Public Practice Programme”
organised by the MIA.

5. DESCRIBE THE APPOINTMENT,REMOVAL AND RESIGNATION
OF AUDITOR ACCORDING TO COMPANY’S ACT 1965.
172. (1) 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.
(2) 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.
(3) 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.

6. (4) 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
(8) A company shall, forthwith after the removal of an auditor
from office in pursuance of subsection (4), give notice in writing
of the removal to the Registrar and, if the company does not
appoint another auditor under subsection (7), the Registrar shall
appoint an auditor.
(15) If an auditor gives notice in writing to the directors of the
company that he desires to resign, the directors shall call a general
meeting of the company as soon as is practicable for the purpose
of appointing an auditor in place of the auditor who desires to
resign and on the appointment of another auditor the resignation
shall take effect.

7. 2.2.3 Discuss the auditor’s duty,rights and
responsibility according to company’Act 1965.

8. Powers and duties of auditors
as to reports on accounts
174. (1) Every auditor of a company shall report to the members
on the accounts required to be laid before the company in general
meeting and on the company’s accounting and other records relating
to those accounts and if it is a holding company for which consolidated
Accounts are prepared shall also report to the members on the consolidated accounts.
(4) An auditor of a company has a right of access at all reasonable
times to the accounting and other records (including registers) of
the company, and is entitled to require from any officer of the
company and any auditor of a related company such information
and explanations as he desires for the purposes of audit.

9. (5) An auditor of a holding company for which consolidated
accounts are required has a right of access at all reasonable times
to the accounting and other records (including registers) of any
subsidiary, if necessary, and is entitled to require from any officer
or auditor of any subsidiary, at the expense of the holding company,
such information and explanations in relation to the affairs of the
subsidiary as he requires for the purpose of reporting on the
consolidated accounts.
(6) The auditor’s report shall be attached to or endorsed on the
accounts or consolidated accounts and shall, if any member so
requires, be read before the company in general meeting and shall
be open to inspection by any member at any reasonable time