The members (shareholders) of a company appoint the auditor at an annual general meeting, or other general meetings of the company at which the financial statements are put forward for approval by the members. The appointment must be made by the end of the 28th day after the last date of which the accounts must be filed. If an auditor is not appointed within this time, the existing auditor is deemed to be reappointed, subject to certain condition.
The exception to the above rule is where the directors appoint the auditor either to:
- fill a casual vacancy, for example when the existing auditor resigns during the year; or
- Appoint the first auditor between the date of incorporation and the first AGM or if the company qualifies to require an audit, before the next AGM.
In both cases the member must then reappoint the auditors at the next AGM, by ordinary resolution (50%+ majority).
Source: ICAEW
shareholders
External auditors are certified public Accountants (CPAs) licensed by their states to provide auditing services.
External auditors are certified public accountants (CPAs) licensed by their states to provide auditing services.
external auditors focus primarily on controls that affect financial reporting. External auditors have a responsibility to report internal control weaknesses (as well as reportable conditions about internal control)
The internal audit of PwC is carried out by auditors of PwC itself, while an external audit will have to be carried out by external auditors. But external audits are only valid for public listed companies.
to make free and fair view
The SEC has delegated the oversight of external auditors to the newly created Public Company Accounting Oversight Board (PCAOB).
External auditors are required to ensure there is no fraud (hanky panky) going on in the company. If you run a company that are check by your own employees, you cannot be certain that the checks are neutral. External auditors are independent parties who provide a realistic and impartial view into the company's conduct.
ESF 15 Operations Director
I believe the external auditors are Ernst & Young. Keep in mind, Enterprise also has an internal audit department that does a fantastic job.
An external audit helps businesses improve their processes. Recommendations made by external auditors are generally unbiased, which will allow managers to take them seriously.
Quality control of AISs involves many activities, including the services of both external auditors (public accountants) and internal auditors.