AA – L2 – SA – Q4.2 – Auditor Term of Office

Duration of an auditor’s term of office.

Question

How long is the auditor’s term of office?

A Until the audit is complete

B Until the financial statements are complete

C Until the auditor resigns by writing to the company

D Until the directors remove them

Answer

Explanation:
The Companies Act, 2019 (Act 992) specifies that an auditor’s term of office continues until they resign by providing written notice to the company. The term is not tied to the completion of the audit, financial statements, or removal by directors, making option C the correct answer. This reflects the legal provisions governing auditor tenure and resignation.

Tags: Auditor Appointment, Auditor Term, Companies Act, ICAG, Regulatory Framework
Level: Level 2

Topic: Regulatory Framework and Audit Responsibilities

Uploader: Salamat Hamid