Which of the following persons are permitted to be appointed as the auditor of a company - a director of the company, a prescribed officer o
Written by Dr. Adv. Leigh Hefer & Jayne Hunter-Rhys. COMPANY SECRETARY’S HANDBOOK (2021). Published by Genesis Corporate Services.
None. Section 90(2) provides that to be appointed as the auditor of a company, the person or the firm:
1.1 a registered auditor – section 90(2)(a);
1.2 acceptable to the company’s audit committee as being independent of the company, having regard to the matters enumerated in section 94(8] (the independence criteria by an audit committee), in the case of a company that has appointed an audit committee, whether as required by section 94, or voluntarily as contemplated in section 34(2) – section 90(2)(c)
must not be:
2.1 a director of the company – section 90(2)(b)(i);
2.2 a prescribed officer of the company – section 90(2)(b)(i);
2.3 an employee or consultant of the company who was or has been engaged for more than one year in the maintenance of any of the company’s financial records or the preparation of any of its financial statements – section 90(2)(b)(ii);
2.4 a director, officer or employee of a person appointed as company secretary in terms of Part B of Chapter 3 – section 90(2)(b)(iii);
2.5 a person who, alone or with a partner or employees, habitually or regularly performs the duties of accountant or bookkeeper, or performs related secretarial work, for the company – section 90(2)(b)(iv);
2.6 a person who, at any time during the five financial years immediately preceding the date of appointment, was a person contemplated in any of subparagraphs 1.2.1 – 1.2.5 hereabove – section 90(2)(b)(v);
2.7 a person related to a person contemplated in subparagraphs 1.2.1 – 1.2.6 hereabove – section 90(2)(b)(vi).
Source: Sections 34(2), 90(2), 94(8] of Companies Act 71 of 2008
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None. Section 90(2) provides that to be appointed as the auditor of a company, the person or the firm:
1.1 a registered auditor – section 90(2)(a);
1.2 acceptable to the company’s audit committee as being independent of the company, having regard to the matters enumerated in section 94(8] (the independence criteria by an audit committee), in the case of a company that has appointed an audit committee, whether as required by section 94, or voluntarily as contemplated in section 34(2) – section 90(2)(c)
must not be:
2.1 a director of the company – section 90(2)(b)(i);
2.2 a prescribed officer of the company – section 90(2)(b)(i);
2.3 an employee or consultant of the company who was or has been engaged for more than one year in the maintenance of any of the company’s financial records or the preparation of any of its financial statements – section 90(2)(b)(ii);
2.4 a director, officer or employee of a person appointed as company secretary in terms of Part B of Chapter 3 – section 90(2)(b)(iii);
2.5 a person who, alone or with a partner or employees, habitually or regularly performs the duties of accountant or bookkeeper, or performs related secretarial work, for the company – section 90(2)(b)(iv);
2.6 a person who, at any time during the five financial years immediately preceding the date of appointment, was a person contemplated in any of subparagraphs 1.2.1 – 1.2.5 hereabove – section 90(2)(b)(v);
2.7 a person related to a person contemplated in subparagraphs 1.2.1 – 1.2.6 hereabove – section 90(2)(b)(vi).
Source: Sections 34(2), 90(2), 94(8] of Companies Act 71 of 2008
Hard copy and E-Book Publications for the Professionals, Company Secretaries, Company Directors and Prescribed Officers, Members of CCs, Business Owners, Lecturers and Students on various business, compliance and legislative topics.
Updated on: 23/05/2023
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