WHO IS AN AUDITOR?

According to the Oxford Advance learners Dictionary 6th Edition defined an Auditor as “somebody who verifies accounting data, determines the accuracy and reliability of accounting statements and reports, and then reports upon its efforts.

He is an independent person who reports on the truth and fairness of a financial statement. Thus, the internal auditor(s) of the company who must be a qualified accountant is always charged with the duty of providing a complete and continuous audit or the accounts and records of revenue, expenditure, plant, allocated and unallocated stores, contracts and the internal controls relating to the financial operations of the company.

QUALIFICATION OF AN AUDITOR

Of Colossal importance of paramount necessity is it, and justifiable too to state emphatically that one of the major and indispensable qualification of an auditors is that;

Auditors must undergo professional training and must be registered with an accounting body such Institute of Chartered Accountant of Nigeria (ICAN), ANAM etc at stipulated in the Company Allied Matter Act (CAMA) 1990.

APPOINTMENT OF AN AUDITOR

According to section 358 of Company and Allied Matter Act (CAMA) 1990, the stipulations as regards to the appointment an auditors are as follows;

i. An auditors may/could be appointed by the company if there is casual vacancy in the position of an auditor.

ii. Another reason according the provisions of the said section are when the in ambient, acting auditor dies before the expiration of his tenure.

iii. Yet another reason is when the auditor resign willing.

iv. When the members agree to remove the incumbent auditor before the expiration of his tenure.

v. An auditors may be appointed when at the Annual General Meeting (AGM) of the company, the members, shareholders agree to appoint a new auditor or reappoint the incumbent one.