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All You Need to Know

Appointment of Auditors

Who is an Auditor?

As the financial year comes to a close, both government and non-government organizations must meticulously track their accounts and audit reports. These financial statements require thorough analysis and assessment before being submitted to the relevant authorities. This critical examination is performed by an Auditor. An Auditor is a person trained to review and verify accounting data and is recognized as a Chartered Accountant (CA) under the Chartered Accountants Act, 1949.

Qualifications of an Auditor

To be eligible for appointment as an auditor, an individual must be a Chartered Accountant. For a firm to be eligible for the role of auditor, the majority of its partners must be Chartered Accountants practicing in India. If a limited liability partnership (LLP) firm is appointed as an auditor, only the Chartered Accountant partners will be authorized to act and sign on behalf of the firm.
Appointment of an Auditor is significant in a company that analyses and understands a company’s financial records to deliver effective analyses and relevant information. Management can use this information to evaluate the company and implement measures necessary to meet their objectives.

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2999/-
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  • Document preparation
  • Appointment or Resignation of Auditor
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Duties of an Auditor

Provide an Audit Report
Make Proper Enquiry
Assist in Branch Audit
Compliance With Auditing Standards
Reporting of Frauds
Provide Assistance in Investigation
Adhere Principles of Auditing
Provide Negative Opinion

Documents required for Auditor’s appointment

Company’s Board resolution copy
NOC from old auditors
A written consent from the Auditor to such appointment
A certificate from the Auditor that he/she/it is not disqualified to be appointed as an Auditor under section 141
Copy of the intimation sent by company to the auditor
Name of the new auditor firm
Address of the new auditor firm
Email address and PAN number
A number of years for which the firm is appointed
Details of the resigning auditor firm
Appointment date of the new auditor firm
Digitally signed Form ADT-1 (along with the signature of the director of the company)

How to Appoint an Auditor in Company?

5 Easy Steps

Fill in Simple Checklist

Our team will reach out to you to collect your documents along with a simple checklist. Fill out the checklist and submit it with your documents for processing. Our expert team will then review the documents and move forward with the Auditor’s appointment.

Consent From Auditor

Before appointing an auditor for your company, we will obtain the auditor’s written consent along with a certificate confirming their eligibility. After receiving the auditor’s consent, we will prepare all necessary documents required for filing with the Registrar of Companies (ROC) for the Auditor’s appointment.

Filing of Form

Once you review and sign the draft documents, we will complete and file Form ADT-1 with the concerned ROC. Upon approval from the ROC, we will notify you about the successful appointment of the Auditor.

FAQs On Appointment of Auditor

You must appoint the first Auditor of your company within 30 days from the date of incorporation. The appointment is made by the Board of Directors of the company through a board resolution. To complete the appointment, you need to obtain the auditor's written consent and a certificate from them, then file Form ADT-1 with the Registrar of Companies (ROC). If you need help with this process, our team at My File Tax can assist you with the documentation and filing.

If the Board fails to appoint the first Auditor within 30 days of incorporation, the responsibility falls on the company’s shareholders. In such a case, the shareholders must appoint the Auditor in an Extraordinary General Meeting (EGM) and file Form ADT-1 with the ROC. If you need assistance with this process, Chaahna Associates is here to help.

The tenure of the first Auditor is from the date of their appointment until the conclusion of the first Annual General Meeting (AGM). They will serve until the AGM is held, at which point a new Auditor will be appointed for the subsequent term.

We offer our services to clients both in India and internationally. Whether you are located in India or abroad, you can reach out to us for expert assistance with your company’s compliance needs.