Auditing and Assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

Pandit & Associates is the firm of practicing chartered accountants. The firm accept the audit of Siddhartha Ltd. where Government of Nepal (GoN) holds 60 % ownership. What is the responsibility of Pandit & Associates before accepting such audit? Comment
As per the provision of section 11 of Audit Act 2075, the auditor of companies where GoN holds majorities of share should be done in consultation with the Office of Auditor General of Nepal. Further the practicing-chartered accountant as per section 34 (13) of ICAN Act 2053 should not accept his appointment as an auditor of an organization without ascertaining that all required procedures for appointment as the auditor under the prevailing law has been duly fulfilled.
In the light of aforesaid provisions of Audit Act 2075, Pandit & Associates before accepting appointment, should ensure that whether Siddhartha Ltd. has consulted with the Office of Auditor General of Nepal for their appointment.

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