Replace auditors that have served more than 6 years – Registrar General to private companies

The Registrar General has directed private companies operating in Ghana to replace their auditors that have served for more than six years, Graphic Business has reported.

According to Jemima Oware, companies are to comply with the directive before August 2022.

Providing further clarity, the Registrar General explained the move was in compliance with Section 139 (11) of the Companies Act, 2019 (Act 992).

The Act however mandates that auditors that have served a private company for more than six years must be replaced and not reappointed to audit the company until another six years.

The section of the Act also states that “An auditor shall hold office for a term of not more than six years and is eligible for appointment after a cooling-off period of not less than six (6) years.”

Meanwhile, Jemima Oware said some institutions have been exempted from the directive.

These include banks and non-bank financial institutions (NBFIs), insurance companies, capital market operators and special purpose vehicles (SPVs) that were regulated by special legislations.

Apart from these, all private companies and firms are enjoined to comply with the directive.

Auditors for these specialized institutions are mandated to rotate after a period of serving five to seven years under already placed regulations governing their operations.