Company auditor, duties, resignation and removal

In this lesson

1. 0:00 Audit requirements and exemptions
2. 0:29 Auditor appointment process
3. 2:03 Who auditors work for
4. 3:18 Auditor eligibility and independence
5. 3:55 Auditor duties and true fair view
6. 5:38 Auditor rights and protections
7. 6:45 Auditor resignation and removal
8. 9:01 Exam question walkthrough

About this lesson

This video covers the appointment process, the auditor's statutory duty to give a true and fair opinion, their right to access company records and staff, and the procedures for auditor resignation and removal—essential knowledge for the Audit and Assurance paper. The video explains that auditors work for shareholders, not directors, and must be independent members of a recognised supervisory body. You'll understand the core duties: reporting on whether accounts are true and fair, prepared under the Companies Act 2006, and consistent with the director's report. The auditor's rights—access to books, records, and staff; notice of meetings; and protection against misleading information—exist to safeguard their ability to fulfil these duties. You'll also learn the practical procedures: directors appoint the first auditors until the AGM, where shareholders vote by ordinary resolution. If removing an auditor, the company must pass an ordinary resolution with special notice (28 days), giving the auditor time to circulate a written representation and attend the meeting to speak. Resignation requires the auditor to provide a statement of circumstances and notify the registrar within 14 days. The video includes a worked exam question to reinforce the distinction between ordinary and special resolutions.

Duration: 11m