Qualification for Appointment as Auditor
The purpose of Section 389 is to define the eligibility for appointment as auditor to a company incorporated under a Companies Act. It is neither an assessment of competency nor a barrier to the provision of accountancy services to the public.
Appointment as auditor to a limited company is only a part of the work of a practising accountant who is professionally qualified and holding a current practising certificate issued by a chartered supervisory body and is not relevant to accountancy appointments in industry, commerce, public service or any other area of accountancy work. A member of the Association is fully comparable to a member of one of the Chartered bodies in providing services in the areas of management and taxation.
Though (the U.K.) Parliament has given to the Department for Business, Innovation and Skills (BIS) the right to recognise bodies of accountants, only one body of accountants has been partially recognised since the Companies Act 1948 was enacted.
The Association's examinations provide the skills and knowledge not only for public practice, but for senior management appointments requiring accountancy expertise, as well as for senior financial appointments in industry, commerce and public service.