As a general rule, the auditor is appointed by the shareholders at the annual general meeting. Which of the following is not true concerning the appointment of an auditor?
A) In practice the shareholders generally accept the recommendations of the directors concerning the appointment
B) the appointment stands for 12 months until the next annual general meeting
C) the company is liable to pay reasonable fees and expenses of the auditor.
D) an auditor ceases to hold office after a company goes into liquidation.

Question

Quizplus · Accepted Answer

The Answer of As a general rule, the auditor is appointed by the shareholders at the annual general meeting. Which of the following is not true concerning the appointment of an auditor?
A) In practice the shareholders generally accept the recommendations of the directors concerning the appointment
B) the appointment stands for 12 months until the next annual general meeting
C) the company is liable to pay reasonable fees and expenses of the auditor.
D) an auditor ceases to hold office after a company goes into liquidation.

As a General Rule, the Auditor Is Appointed by the Shareholders