H X C B N M Alt ANNEXURE 1: FORMATIVE ASSESSMENT 2 QUESTION 4 K L Alt C (25 Marks) Santiago Ltd is an entity based in Claremont, Cape Town. The company has been audited by the same audit firm, M&S Auditors, for the last 5 financial years. M&S Auditors resigned as auditors at the end of the last financial year ending 28 February 2022. Overall, M&S Auditors have not had many issues with the audits of Santiago Ltd. One issue was however that they, as auditors, were often restricted by Santiago Ltd in obtaining documents during the audit. Santiago Ltd has appointed R&Z Auditors from 1 March 2022 as the new auditors. Required: 4.1 List the process and procedures regarding the resignation of an auditor as well as the procedures for filling vacancy in terms of the Companies Act. (5 marks) 4.2 Explain with reference to the Companies Act the process and circumstances under which M&S Auditors would be allowed to continue as auditors of Santiago Ltd. (5 marks) 4.3 List and explain the rights and functions of auditors. (5 marks) 4.4 Discuss the requirements of appointing new auditors in terms of the Companies 97 Act (10 marks) HLAA130-1-Jul-Dec2022-FA2-V2-MK-28062022