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Topic for Discussion: Legal Consideration Regarding Auditing



You are working as an audit consultant in RGB & Co. a chartered accountant firm located in Islamabad. You received a letter from the director admin of CYAN Group of companies on 4th May,2017. The group is the client of RGB & Co. with registered head office located in Lahore. The group has four public limited unlisted companies namely C, Y, A and N which are paint manufactures Currently, these four companies are being audited by four different audit firms. The director admin of the group in his letter requested you to advise him as to who will have the authority to appoint new auditor in the following cases pertaining to these four companies of the group:

  1. Auditor of company C will be retiring on the AGM (Annual General Meeting) of the company in October, 2017.
  2. Auditor of company Y resigned on 28th March, 2017.
  3. Auditor of company A removed by the members on 2nd May,2017.
  4. Auditor of company N became disqualified on 14th April,2017.


You are required to mention the name of appointing authority with proper justification within 100 words in each case.


Important Instructions:

  • Your discussion must be based on logical and legal aspects of the requirements of the topic with proper justification.
  • Words limit is 100 words for each case.
  • Use the font style “Times New Roman” and font size “12”.
  • Your answer should be relevant to the topic i.e. clear and concise.

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