Explain to the directors need for an audit

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Question - Restmount Ltd. was formed on 1 October 2014 in order to export tea and coffee to European markets. The Directors are unsure as their responsibilities and the nature of their relationship with the external auditors. The audit partner has asked you to visit the client and explain to the directors, the fundamental aspects of the accountability of the directors and their relationship with the auditor.

Required - Explain to the directors of Restmount Ltd: -

a) The need for an audit.

b) Procedures for the appointment of an auditor of a public company under the Companies Act.

c) Directors' responsibilities in relation to the accounting function of the Company.

d) Auditor's statutory responsibilities in relation to the audit of the company's financial statements.

Provide detailed explanation and answers for this question.

Reference no: EM132931028

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