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6. Assume that you have been properly appointed as an auditor of MAKARI Enterprises Ltd. As part of your first interim audit of the company

6. Assume that you have been properly appointed as an auditor of MAKARI Enterprises Ltd. As part of your first interim audit of the company you attended a wages payout. The exercise brought to light the fact that some of the wages were drawn for non-existent employees. Further enquiry revealed more that some of the wages were in fact for the personal domestic staff of the five directors of the company and that this had been a practice for some years. The practices were never authorized by any policy documents of MAKARI Enterprises Ltd. You indicated that the matters should be reported to the shareholders. It seems that the directors were unhappy about your reaction of reporting the matter to the shareholders. You have been accordingly informed that your services are no longer required. You have received a special notice of general meeting of the company to be held for the purpose of dismissing you as one auditor of MAKARI Enterprises Ltd in due course. Required: (i) State the procedures applied to protect the removal of an auditor from the office. (ii) From the scenario above, State whether the auditor may be removed in the manner proposed. Give reasons.

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