Question

Question Five (5) [20 Marks]

a) Outline ten main distinctions between auditors and accountants.

b) Mention any two duties of an audit committee.

c) With reference to the Company’s Act, mention any six duties of a company secretary. (6 Marks)

Answer 1

Explanation :

ANSWER 01 :

Auditor is proffessional person who basically audits the accounts of the compan.
audit means examination of the companies accounts.
Accountant: is one who prepares the companies accounts which are related to the financial transactions.

Difference between auditor and accountant are as follows :
1. auditor examines the company's financial statements where as accountant prepares such accounts that is bookkeeping.
2. auditor works independently where as accountant is dependent to the organisation.
3.auditor is appointed only for a specific period whereas account and works throughout the year.
4. auditor is paid in form of professional fees where as accountant is paid salary.
5. auditor is an expert in accounting whereas accountant have basic qualifications in accounting.
6. auditor is appointed by the audit committee whereas accountant is appointed by HR manager.
7. Auditor works for many organisation whereas accountant works only for single organisation.
8. Auditor report to audit committee or to those charged with governance wheras accountant reports to finance manager.
9. The company has statutory requirement to appoint auditor. Whereas Accountant is appointed for book keeping.

10. Auditor is not an employee to the organisation whereas accountant is the company's employee.

ANSWER 02

Audit committee is a committee which is constituted as per the requirements of the Companies Act to maintain transparency in appointment of an auditor.

duties of an audit committee or as follow 1. audit committee recommends, appoints and decides the remuneration of an auditor.
2. The audit committee also approves the financial statements of an organisation after the approval by an auditor.

ANSWER 03

Duties of Company Secretary are
1. company secretaries basically covered with the administration of the organisation.
2. Company secretary is required to maintain company's legal records.
3. company secretary is responsible for all the legal work of the company company.

4. secretaries are legal advisor of the company.
5. company secretary decides the General Meeting chairperson.
6. secretary sends the notice of all the meetings to the members and directors.