Overview
An auditor is a person who has been conferred with extensive powers and rights as he is considered as the shareholder’s agent. There are specific provisions in the Act for the enjoyment of these rights by the auditor and nobody can prevent him from doing so. An Audit company in Bahrain ensures that all its auditors do enjoy those statutory rights during their engagement period with the company.
What are the statutory rights being enjoyed by an auditor?
The following are few of the statutory rights of an auditor:
- Right to use books of accounts
The auditor enjoys the right to get access to the company’s accounting books vouchers, and relevant documents at all times during his office term.
- Right to seek the Information and related explanations
The auditor has a right to ask for any sort of required information or explanation while doing his duty and the company’s staff be it some of the Managing Director, any officer or employee must give the required information and explanation. In case of any refusal of the information, the auditor can directly report the matter to the board members.
- Right to offer suggestions
The auditor also enjoys the right to make suggestions to the management and board members about the suitable changes, if any, in the method of accounting and the directors should comply with it. Failing which, the auditor must report it to the members. But an auditor can only make suggestions and has no right to make any changes on his own accord.
- Right to visit the branches of the company
The auditor can also visit the branches of the company locally but not any foreign branches. However, a qualified auditor can get the account copies certified by the branch auditor and can reach such documents at any time.
- Right to attend the meetings and receive notice
The auditor during his term with the company can receive the notices and communications relating to all general meetings. The auditor is also entitled to attend the meetings and can speak at the meeting to clarify his point.
- Right to sign the audit report
Auditor’s report can only be signed by the auditor or any of the practicing partners being appointed by the firm. The first auditor has a right to sign and authenticate a particular part of the statutory report or any other document, which the act requires to give.
- Right to Remuneration
An auditor has a right to get the payment fixed by the appointing authority. But he can claim the amount only after the entire completion of the work.
- Right to be indemnified
Under certain or some extreme circumstances, if a company takes civil and criminal proceedings against the auditor, he has a right to defend himself against the proceedings and if he is acquitted or the judgment goes to his favor, then he is liable to get the compensation of losses incurred to him while defending the suit by the company.
- Right to take technical and legal advice
The auditor, on a need basis, can take advice or opinion from the legal and technical experts.
Conclusion
An Audit company in Bahrain while offering the auditor services to the company ensures a smooth working atmosphere for him during his office term. It can also help the client by offering tailor-made and refined services as per their business needs. This strategy helps the audit company to work in favor of both his auditor and his client.