Appointment Of Auditor

Introduction

CorpIQ - Your Trusted Partner for Auditor Appointments in India

Ensuring the appointment of a competent and reliable auditor is crucial for any company looking to maintain financial transparency and adhere to statutory audit requirements. CorpIQ simplifies this essential task with our expert services designed to align with the Companies Act, 2013, and other regulatory standards in India. Our team of Chartered Accountants, Company Secretaries, and Lawyers specializes in facilitating auditor appointments that uphold the integrity and accuracy of your financial reporting.

WHY CHOOSE CORPIQ FOR AUDITOR APPOINTMENTS?

- Regulatory Mastery: We are well-versed in the Companies Act, 2013, particularly the provisions under sections 139 to 148, governing the appointment, remuneration, and rotation of auditors.

- Seamless Process: From identifying potential auditors to handling the ADT-1 form filing with the ROC, CorpIQ manages the entire process efficiently and effectively.

- Due Diligence: Our experts conduct thorough due diligence to ensure the auditor's qualifications, independence, and reputation align with your company's needs.

- Timely Compliance: We keep track of the appointment timelines to ensure your company meets all statutory deadlines, avoiding any non-compliance risks.

- Board and AGM Coordination: CorpIQ assists in preparing the necessary resolutions for the Board meeting and the Annual General Meeting (AGM), facilitating clear communication and approval from the company's directors and shareholders.

- Ongoing Support: Even after the appointment is complete, CorpIQ remains engaged to assist with any queries regarding audit procedures, compliance, or reporting.

With CorpIQ's comprehensive auditor appointment services, your company can be assured of a process that is not only compliant with Indian regulations but also smooth and trouble-free.

LEGAL SIDE OF AUDITOR APPOINTMENT:

Every company registered, whether it is a Private Limited Company, a One-Person Company, or a Public Limited Company, is required to maintain a proper book of accounts and to have the book of accounts audited. As a result, an auditor must be appointed by the Board of Directors of the company after incorporation. In the absence of the directors appointing first auditors within 30 days of the date of incorporation of the company, the shareholders can do so within 90 days. We examine the requirements and procedures for the appointment of an auditor in this article.

DOCUMENTS REQUIRED:

When the company appoints a new auditor, the following documents must be filed. Here are the list of documents the company requires to file when appointing a new auditor:

• Please provide a copy of the form MGT-14 along with a copy of the board's resolution.
• Form ADT-1 is to be filed with the Registrar of Companies.

In addition to the above forms, the following information must be provided to the ROC:

• The name of the new auditor firm.
• New Auditor firm's address.
• Please provide Email address and PAN number.
• The period of time for which the firm has been appointed.
• Resigning auditor's details.
• Date of appointment of the new auditor firm.
• The signed Form ADT-1 together with the signature of the director of the company.

 

AUDITOR APPOINTMENT PROCEDURE:

The auditor of a company can only be a practicing Chartered Accountant. It is necessary to obtain the written consent of the auditor before appointing the auditor of the company, along with a certificate from the auditor stating that the appointment will be made in accordance with the conditions prescribed by the auditor, as well as that the auditor meets the criteria outlined in Section 141 of the Companies Act, 2013.

The Company's Board of Directors can appoint the Auditor after obtaining the consent of the Auditor. The auditor's appointment must be communicated to the Registrar of Companies within fifteen days. Assuming office at the conclusion of the first general meeting, the first auditor will hold the position until the conclusion of the sixth general meeting. At every annual general meeting, the company should, however, submit the matter of the appointment of an auditor for ratification by members.

• APPOINTMENT OF THE FIRST AUDITOR
• Depending on the recommendation of the Audit Committee, the Board recommends the appointment of an auditor to the members of the company, and sends the recommendation back to be reconsidered. In the event that the audit committee decides not to reconsider its recommendations, the Board will record its reasons for disagreement and make its own recommendation to the company's members.
• In the case of Government Companies, the first auditor will be appointed by the Auditor-General of India and Comptroller within 60 days of the company's registration. If the Auditor-General of India and Comptroller fails to appoint such auditor within the specified time period, the Board of Directors will appoint such auditor within the following 30 days.
• First auditors hold office until the end of the first annual general meeting.

 

• APPOINTMENT OF SUBSEQUENT AUDITOR
• All auditors (other than the first auditors) must be appointed by the general meeting of the company.
• An auditor appointed at the general meeting takes office at the conclusion of that meeting, with that meeting counting as the first meeting after the appointment.
• Members must approve the casual vacancy created by registration within 3 months of the recommendation date of the Board if it creates a casual vacancy in the office of auditor. In such a case, the auditor may remain in office until the end of the next annual general meeting.

It is mandatory for the Company to file ADT-1 within 15 days of appointing the subsequent auditor.