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Auditor’s Core Responsibilities

Examine Financial Records

Assess Internal Controls

Issue Independent Report

Ensure Legal Compliance

Identify Fraud and Errors

Provide Recommendations

Ensure Adherence to Ethical Standards

Advise on Financial Management

Procedure for the appointment of an auditor

Board Resolution

The Board of Directors must pass a formal resolution to appoint an auditor. This resolution should clearly state the auditor’s name, the term of the appointment, and the agreed-upon remuneration.

Consent from the Auditor

The company must obtain a written consent from the auditor, confirming their willingness to accept the appointment. The consent letter should also verify that the auditor is qualified and meets eligibility requirements.

Eligibility Check

Before appointing an auditor, the company must ensure that the auditor fulfills the necessary qualifications under the Companies Act. This includes ensuring they are a CA or a firm of CA, and are not disqualified .

Shareholders' Approval

For the first auditor appointment, the shareholders must approve the auditor at the AGM. For subsequent years, the reappointment can be done at the AGM or by passing a resolution.

Issue Appointment Letter

Once the auditor is confirmed, the company issues an appointment letter. This document outlines the auditor’s duties, the scope of the audit, the terms of engagement, and the remuneration.

Approval of Remuneration

The auditor's remuneration should be discussed and approved by the Board or the shareholders during the appointment. This ensures there is clarity on compensation for services rendered.

Filing Form ADT-1

After the appointment, the company must submit Form ADT-1 to the ROC within 15 days. This form serves as an official record of the auditor’s appointment.

List of documents required for the appointment of auditors

1

Board Resolution

A resolution passed by the Board of Directors for the appointment of the auditor, stating their name and term of appointment.

2

Consent Letter from the Auditor

A written consent from the appointed auditor confirming their willingness to act as the company’s auditor.

3

Certificate from the Auditor

A certificate confirming that they meet the eligibility criteria and are not disqualified under the Companies Act.

4

Form ADT-1

A duly filled Form ADT-1 to be submitted with the ROC within 15 days of the appointment.

5

PAN Card of the Auditor

A copy of the PAN card of the appointed auditor for verification and record-keeping.

6

Qualification Proofs

Proof of professional qualification, such as the Chartered Accountant (CA) certificate or membership number, to confirm eligibility.

FAQs on Appointment of Auditor

Frequently Asked Questions (FAQ) - Appointment of an Auditor

1. How is an auditor appointed?

An auditor is appointed by the Board of Directors, followed by approval from the shareholders at the Annual General Meeting (AGM). After the appointment, Form ADT-1 must be filed with the Registrar of Companies (ROC) within 15 days.

2. Who can be appointed as an auditor?

An auditor must be a qualified Chartered Accountant (CA) or a firm of Chartered Accountants. They must meet the eligibility criteria outlined in the Companies Act and must not be disqualified from performing audit duties.

3. What documents are required for the auditor’s appointment?

Documents required include the Board Resolution approving the auditor, auditor’s consent letter, proof of auditor's qualifications, Form ADT-1 for ROC filing, and approval of remuneration.

4. What is the duration of an auditor’s appointment?

An auditor is generally appointed for one year, and reappointment is needed annually at the AGM. The term can be renewed or changed based on the company's requirements and performance.

5. Can an auditor be removed before the term ends?

Yes, an auditor can be removed during the term, but it requires a special resolution passed by the shareholders. A valid reason for removal must be provided, and the company must follow due process as per the Companies Act.

6. Is it mandatory for every company to appoint an auditor?

Yes, it is mandatory for every company to appoint an auditor within 30 days of incorporation. Failure to do so could result in penalties and other legal consequences.

7.Still, Have Confusion?

Don’t worry!! Our expert will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at support@newtaxage.com

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Place your query/Request Call Back from our experts

Place your query/Request Call Back from our experts

Auditor’s Core Responsibilities

Procedure for the appointment of an auditor

List of documents required for the appointment of auditors

FAQs on Appointment of Auditor

Frequently Asked Questions (FAQ) - Appointment of an Auditor

1. How is an auditor appointed?

2. Who can be appointed as an auditor?

3. What documents are required for the auditor’s appointment?

4. What is the duration of an auditor’s appointment?

5. Can an auditor be removed before the term ends?

6. Is it mandatory for every company to appoint an auditor?

7.Still, Have Confusion?

Client Testimonials
We Are Rated 4.8 on Google

.

Place your query/Request Call Back from our experts

Place your query/Request Call Back from our experts

Auditor’s Core Responsibilities

Procedure for the appointment of an auditor

List of documents required for the appointment of auditors

FAQs on Appointment of Auditor

Frequently Asked Questions (FAQ) - Appointment of an Auditor

1. How is an auditor appointed?

2. Who can be appointed as an auditor?

3. What documents are required for the auditor’s appointment?

4. What is the duration of an auditor’s appointment?

5. Can an auditor be removed before the term ends?

6. Is it mandatory for every company to appoint an auditor?

7.Still, Have Confusion?

Client Testimonials We Are Rated 4.8 on Google

Client Testimonials
We Are Rated 4.8 on Google