Case study 2- company law PA304 Answer; Question 1: The company act 1965,the auditor duties and responsibilities.

Every auditor of a company shall report to the members on the accounts required to be laid before the company in general meeting and on the company's accounting and other records relating to those accounts and if it is a holding company for which consolidated accounts are prepared shall also report to the members on the consolidated accounts. Ardisco & associates has report all the financial statement to the management group in fews days before the general meeting. An auditor of a company has a right of access at all reasonable times to the accounting and other records (including registers) of the company, and is entitled to require from any officer of the company and any auditor of a related company such information and explanations as he desires for the purposes of audit. Ardisco &associate has the right to look at all the financial statement of the company(Fiona group holding bhd) at all time. An auditor of a holding company for which consolidated accounts are required has a right of access at all reasonable times to the accounting and other records (including registers) of any subsidiary, if necessary, and is entitled to require from any officer or auditor of any subsidiary, at the expense of the holding company, such information and explanations in relation to the affairs of the subsidiary as he requires for the purpose of reporting on the consolidated accounts. In the above case, Ardisco&associate has the right to look for the trading account from the account groups of Fiona group holding bhd. The auditor's report shall be attached to or endorsed on the accounts or consolidated accounts and shall, if any member so requires, be read before the company in general meeting and shall be open to inspection by any member at any reasonable time. All the information can be read by company member of Fiona group holding bhd. this is to ensure about the financial flow of the company. The auditor has the responsibilities to the shareholder, under the common law it say that an auditor must carry out duties with integrity , in this case ardisco&associate had shown their integrity in forming an auditor duties and responsibilities by reporting to the relevant authorities about the hiding of financial information from auditing.

Question 2: Group management responsibilities 1.provide all financial statement to the auditors-The management group should collect all the financial statement from the subsidiary company at southern philippine and sent it to the head office at kota kinabalu to audited by the audtiors(ardisco&associate) 2.the group management should not hide the financial document-The management group should unhide all information regarding the company(Fiona group holding bhd) financial to be audited. 3.the group management should investigate first the problem before taking an legal action to the auditors-Ardisco&associate has reported to the relevant authorities about the account group that had make a mistake in the trading account,so the group management got angry and take legal action to the auditor says that the auditor had breach in code by revealing the company confidential,but the truth is the auditor is doing the right thing for the company(Fiona group holding bhd). Question 3: On this case,it appears that the auditor(ardisco&associate) is not guilty because their had exercise the duties and responsibilities of an auditors under the section 174 of the company act 1965 and thats say that an auditor had to obtain reasonable assurance that the financial statement are free from material misstatements,and also to examine and form an opinion whether the financial statement give a true and fair view of the financial position of the company as of the financial year end and of its financial performance and cash flow or the year Under the common law,show that ardisco&associate has shown an integrity of carrying out duties and also exercise skill and care and document all finding.