i) Per the Companies Act 2019 (Act 992), auditors are appointed by the following process:

• The first auditors of companies are appointed by the directors, who also fill in casual vacancies.
• When a company has no auditor for a continuous period of three months, the Registrar General may appoint an auditor for the company.
• By shareholders at an Annual General Meeting when the appointment of the existing auditor ceases.
  (3 points @ 1 mark each = 3 marks)

Per the Companies Act 2019 (Act 992), auditors are remunerated by the following process:

• When directors appoint an auditor, the directors fix the fees for the period expiring at the next AGM.
• When the Registrar General appoints an auditor, the fees are fixed by the Registrar General.
• By an ordinary resolution of the company or in a manner by which the company may direct by an ordinary resolution.
  (2 points @ 1 mark each = 2 marks)

ii) Reasons why an auditor may resign:

• In relation to fee matters.
• When the management of the auditee and those charged with governance demonstrate a lack of integrity.
• When audit firms can no longer maintain independence.
• Irreconcilable differences between the client and the auditor.
• When the client changes in size and nature, and the auditor no longer has the competency to perform.
• When the client is engaging in illegal activities.
  (Any 5 points @ 1 mark each = 5 marks)