accounting information system

Re Kingston Cotton Mills Auditors are watchdogs not bloodhound Entitled to trust the officers and employees of the co being audited Entitled to rely on the figures presented to them Have any reason to be suspicious, should personally make enquiries or checks APPOINTMENT Approved co and consent to act as auditor S8 appoint approved co auditor applied to Minister to Finance satisfied Minister of good character and competent to perform the duties of auditors i) granted with approval to act or ii) obtained renewal of approval to act as auditor ( every 2 years) Appoint co obtain consent (in writing) to act as auditor from proposed (secretary) auditor or audit firm B4 any appointment. Listed co suitable audit co adequate Experience Resources Persons assigned to audit Immediate announcement to KLSE for any changes in Auditors. Partnership audit firm Appoint in the name of firm Joint auditors but even partner must individually be approved. ii) Qualification of Auditors An auditor of co should not 1) Be indebted to the co, its holding co or subsidiaries exceeding RM2,500 2) be an officer of the co a partner, employer or employee of an officer of the co a partner, employer or employee of an officer of the co or a shareholder or his spouse is a shareholder of a corp. whose employee is an officer of the co or 3) If he is responsible for or is the partner, employer or employee of a person responsible for the keeping of the register of members or the register of holders of debentures of the co (S9(1)(d)) An audit firm shall not be an auditor unless All partners of firm resident in Msia approved co auditors No partners are disqualified under reason (1), (2) and (3). Lodge Form 5 (a return showing full names and address of all partners of the firm) to CCM (Appendix 6(a)) iii) Appointment of first auditors (S 172(1)) Appoint at any time before co 1st AGM. Can be made either Circular resolution of the board At board meeting Advisable As soon as