The Accounting Officer

An accounting officer is required to pass an examination in accounting and other relevant fields to become a member. If found guilty of negligence or unprofessional conduct, a recognized company may exclude the member from their group.

The primary job of an accounting officer is to determine if the financial statements comply with the accounting records and policies used to prepare them. Additionally, the accounting officer must report to members about any issues found in their examination.

It’s important to note that if the accounting officer is a member or employee of a corporation, they must disclose this in their report. They also have the right to access the accounting records and other information of the corporation and obtain necessary explanations from members, in alignment with the Close Corporations Act.

If a violation is discovered during the accounting officer’s performance of their duties, they are legally required to describe it in their report, even if it isn’t material. This includes instances where any changes in the particulars of the founding statement have not been registered or if the liabilities of the corporation exceed its assets.

If the accounting officer knows or believes that the corporation is not doing business and has no plans to resume operations anytime soon, they must inform the Registrar immediately. This includes cases where an accounting officer resigns or is removed from office.

At the end of the day, it is the responsibility of members to ensure that the accounting officer prepares financial statements that accurately represent the corporation’s affairs and comply with accepted accounting practices. Failure to do so can lead to charges of mismanagement.



Written by Michael Russell

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