Discuss the provisions of the Companies Act, 1994 relating to auditors as to: 1. appointment; 2. qualifications; 3. rights, and; 4. duties.

Appointment and Remuneration of Auditors:

1. Auditors are appointed in the Annual General Meeting by the Shareholders;
2. First Auditors of the Company is appointed by the Directors;
3. The Directors may appoint Auditors in case of casual vacancy;
4. The Govt. may appoint an Auditor if the above authorities fail to appoint an Auditor;
5. Auditor's remuneration is to be fixed by the authority of appointing the Auditor.

Qualification of Auditors:
The auditor shall be a Chartered Accountant as per P.O. 2 of 1973. Following persons are not eligible for appointment as Auditor of the Company: 

1. Officers and staff of the Company.
2. Any partner, staff or officers of the officers and staff of the Company.
3. Any person indebted to the Company for more than Tk.1,000 or indebted by any Guarantee for the above amount.
4. Any Director, Partner, Member of Managing Agent firm

The SEC regulation imposed some additional qualifications for appointment of Auditors.

Rights and duties of Auditor:
1. The Auditors have right to access any books of accounts, information, voucher, statement as required to perform the audit work.

2. The auditors may require any information explanation from any officers, staff of the Company for the audit.

 They should investigate the followings:

1.  Security given against the loan and advances whether it is secured or not and whether the terms are detrimental to the interest of the company.
2.  The transactions, which have been shown in the books of accounts, whether they are detrimental to the interest of the company.
3.  Whether or not any assets, shares, debenture or any other securities have been sold lower than the purchase price (other than banking);
4.  Any loan and advances have duly been shown or not by the company.
5. Whether or not any personal expenditure has been shown in the revenue account;
6. Any share issued in cash whether the cash actually received or not and whether the presentation in the Balance Sheet for the same is misleading or not. 

 The auditors will enclose the audit Report with the Accounts and their report shall include:

1. Whether or not they have obtained all information and explanations as required by them;
2. Whether or not the Balance Sheet and Profit & Loss Accounts exhibits a true and fair review of
   the state of affairs of the company;
3. Whether or not proper books of Accounts have been maintained ;
4. Whether or not the Balance Sheet and Profit and Loss Account are in agreement with the books
   of Accounts kept by the company;

If any answer is in the negative the Auditor should disclose the fact and report to the shareholders.