Odipo and Associates, a firm of auditors has been in the business for the last 12 years. Last year two of its senior partners were convicted for fraud and imprisoned for 2 years and as a consequence were deregistered as practising accountants, leaving the firm with no partner but three accountants. Recently the annual general meeting of Wavuvi Co. Ltd. appointed Odipo and Associates as auditors. What are the legal consequences of the appointment?

This problem is based on qualification of auditors for appointment.
 To qualify one must be registered accountant practising individually or as a partner in a firm.
 In this case, the firm of Odipo and Associates is not qualified for appointment as auditor as it has no partner.

The partners are guilty of professional misconduct pursuant to the provisions of the Accountants Act, Cap 531.
 The partners of Odipo and Associates, Wavuvi Co. Ltd. and every officer of the company in default are liable to a fine not exceeding KShs4,000.