Kamariah just graduated from university and now shes working at audit firm called

Khairul & Co. However, Kamariah did not really understand her duties as an auditor.

a) Based on the question above, your duty is to help Kamariah by explaining

about power and rights of an auditor as stated in section 174 of Companies Act
1965.
1. An auditor has a duty to carry out audit properly.
2. An auditor has a duty to be independent and exercise reasonable care and skill
during his audit.
3. Auditor has the right to access at all reasonable time to the accounting records and
other records they required. Section 174 (4)
4. An auditor may also obtain information of the subsidiaries for the purpose of
group reporting. Section 174 (5)
5. An auditor has the right to certify the correctness of the companys accounts.
6. An auditor has the right to detect errors and fraud.
7. Making a report to the members of the company in accordance with section 174
and in the appropriate case by reporting to the management of the company or the
Registrar any irregularities that he/she had discovered.
8. To report to the members on the accounts laid before the general meeting and the
companys accounting and other records. Section 174 (1)
9. Where the company has issued debentures to the public, the auditor is obliged to
send a copy of his report to the trustee for the debenture holders. Section 175 (1)
10. If an auditor discovers any breach or non-observance of the act, he/she must report
the matter in writing to the Registrar. Section 174 (8) (a)
11. Where an auditor discovers any irregularities or suspects fraud or dishonesty, he

has an obligation to bring these matters to the attention of the companys

management or directly to the members.