ICSA Solutions
ICSA Solutions are an innovative series of ebooks that provide immediate access to all the necessary information on a particular topic; offering practical guidance, case studies and time-saving checklists.
Contents
1. Quoted holding company
Chapter 1 looks at quoted companies and outlines the procedures involved in changing the auditor at either the annual general meeting (AGM) or in filling a casual vacancy - the two options available for quoted companies.
2. Unquoted companies
Chapter 2 addresses unquoted companies, again distinguishing between the procedures involved in changing auditors part-way through the year (to fill a casual vacancy) which is usually the case where there are only a few active shareholders involved in the selection process; and at the AGM or otherwise by shareholders’ resolution, which is usually the case where there are a large number of passive shareholders.
3. Subsidiaries
Chapter 3 looks at the practical implications of changing the auditors of subsidiaries. This is largely a logistical challenge, as a quoted group might have hundreds of UK subsidiaries.
4. An explanation of detailed auditor changeover rules
Chapter 4 provides an explanation of the detailed statutory rules on auditor appointment; the statutory rules on the termination of the old auditor’s appointment; and professional and contractual matters.
Appendix: Defined terms
Practical tools and other customisable content
This publication includes the following customisable content:
- Flowchart – appointment procedures
- Flowchart – cessation of office procedures
- Sample letter to Old Auditor making changeover arrangements and authorising communication with New Auditor
- Sample letter: Circulation to company members and others by an unquoted company (if statement of circumstance is given), or by a quoted company in all cases (Section 520)
- Notification to appropriate audit authority (applicable if the Old Auditor has been removed or resigned or, for major audits, where departure is for any reason (Section 523)
- Covering letter to be sent to the Registrar
- The appointment of New Auditor at the AGM is minuted
- Draft written resolution to be sent to members
- Draft directors’ resolution to be passed at board meeting to appoint new auditor
ICAEW members and ACA students can access the publication subject to the conditions set out in the terms of use, copyright statement and disclaimer below.
You are permitted to view, print and download this eBook for your personal use. Unless you have the permission of the copyright owner, you may not re-transmit the publication to anybody else.
This publication is the copyright of ICSA Publishing Ltd.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission, in writing, from the publisher. This publication is a general guide and is correct at the time of writing.
The publication does not necessarily deal with every important topic or cover every aspect of the topics with which it deals. It is not intended to provide legal advice and should not be treated as a substitute for legal advice. Legal advice should always be sought before taking action based on the information provided. The authors bear no responsibility for errors and omissions.
The Institute of Chartered Accountants in England and Wales (as distributor) disclaims all liability for any errors or omissions.