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متابعة

An external auditor is appointed by management. True or False?

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تم إضافة السؤال من قبل Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
تاريخ النشر: 2016/02/18
MUHAMMAD ETIMAD SYED
من قبل MUHAMMAD ETIMAD SYED , Senior Financial Accountant , TA'AZ Group of Companies

This statement is FALSE. Internal Auditor is appointed by the Management.

 

External Auditors are appointed by the Board of Directors ratified by the shareholders in Annual General Meeting (AGM) . Provided that External Auditors appointed by the Board can be removed / replaced from their office by the Shareholders on valid grounds. 

MINA MAKAR
من قبل MINA MAKAR , Senior Accountant , international containers terminal services

Fals the exretnal Auditor is appointed by board of directors 

Syed Mosawwirullah Shah Mosawwir Shah
من قبل Syed Mosawwirullah Shah Mosawwir Shah , Sr.Manager , PTCL

elaboration of management is required like:

a: in mostly large scale firms BoDs are exist.

b: in mostly large scale firms Governing body is exist.

c: in mostly large scale firms within organization recruitment committee is exist.

d: in mostly firms one man decision is applied.

So, if in above serial No. a to c BoDs, Governing body OR recruitment committee is consider as a management, than, An external auditor is appointed by management. 

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