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ACCA Applied Skills · Corporate and Business Law (Global) · Other company officers

Which of the following is a right of a company's auditor?

The auditor has a right of access at all times to the company's books, accounts and vouchers, and to require information and explanations from officers. Deciding dividends or appointing directors is not an auditor function, as those matters belong to directors and shareholders.

  1. AThe right to set the amount of dividends to be paid
  2. BThe right of access at all times to the company's books, accounts and vouchers, and to require information and explanations from officersCorrect
  3. CThe right to appoint the directors of the company

Explanation

Auditors need access to records and explanations to form their opinion, so they have a right of access at all times and a right to require information from officers. Setting dividends and appointing directors are matters for the directors and shareholders, not the auditor.

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