Companies Act, 1973 (Act No. 61 of 1973)Chapter X: AuditorsAppointment274. Appointment of firm as auditor |
| 1) | This section applies where the auditor appointed in terms of section 270(1) is a firm. |
| 2) | A change in the composition of the members of a firm appointed as auditor of a company for a financial year shall not itself constitute a casual vacancy in the office of auditor for that year, but if, by comparison with the membership of that firm at the time of its latest appointment, less than one half of the members remain after such change, the occasion of that change shall be taken as a resignation of the auditor and a casual vacancy shall be taken to have arisen accordingly. |
| 3) | The appointment of a firm as auditor of a widely held company shall not be valid unless the appointment specifies, in addition to the name of the firm, the name of the individual registered auditor (being a member of the firm) who undertakes the audit. |