2revre020 ‘Appointment of Audtor - Under Companies Act, 2013 Scleartax rrernavoar static) ~ 100% Compliance, 100% Saving, 100% Stress-free Up to 50% off on all services Know more (https://cleartax.in/services/?ref=top-cta-marketplace) Home (/) / Start & Manage a Business (/business) / Manage Business (/s/manage-business) 1 Appointment of Auditor Appointment of Auditor Updated on Nov 27, 2019 - 01:14:33 PM + Who is an Auditor? ‘+ What is the purpose for the appointment of the Auditor? How is the appointment of an Auditor for different kinds of Companies done? ‘+ Appointment Of Auditor Other Than Retiring Auditor By A Special Notice Who is an Auditor? Any individual trained to review and verify accounting data and recognised as a Chartered Accountant (CA) under the Chartered Accountant Act 1949 is deemed to be an auditor. hitpscloartax.inislappoinment-audtors wr2revre020 ‘Appointment of Audtor - Under Companies Act, 2013 What is the purpose for the appointment of the Auditor? The purpose of the auditors in the company is to protect the interests of the shareholders, The auditor is obligated by law to examine the accounts maintained by the directors and inform them of the true financial position of the company. Auditor gives his independent opinion to the owners or shareholders of the company to protect and keep the company in a safe financial condition How is the appointment of an Auditor for different kinds of Companies done? Particulars Non Government Listed/Spe Government Company Company Company 1. Application for -Appointed by the Board Of — Appointed by Board Of —_-Appointed by the 1st Auditor post Directors. Directors. ‘Comptroller and Auditor Incorporation -This has to be done within _-This has to be done General of india. 30 days from the date of within 30 days from the This has to be done Registration. date of Registration within 60 days from the “Appointment can also be -Appointment can also be date of Registration. done by Members at done by Members at -Appointment can also be Extraordinary General Extraordinary General done by Board Of Meeting within 90 days of Meeting within 90 days of Directors within 30 days information. the information of incorporation -Members can also appoint at an Extraordinary General Meeting within 60 days of Information 2. Auditor at First The appointment is done by The appointment is done -The appointment is done AGM. The written the members by the members by the Comptroller and consent and a He will hold office til the end 63s asimum term of Aliditor General of India certificate. of the 6th AGM, -He should be appointed 5/10 consecutive years Please note, the " -Cooling off period of 5 within 180 days from the appointmentshall be ‘st of April in accordancewith years before next the conditions laid appointment will be there. down by the auditor hitpscloartax.inislappoinment-audtors2revre020 ‘Appointment of Audior - Under Companies Act, 2013 3. Appointment of | -The appointment is done by The appointment is done -The appointment is done ‘Subsequent Auditor the members by the members by the Comptroller and Auditor General of India and he will hold office tithe fora Maximum term of thin 499 days from the conclusion of the 6th 5/10 consecutive years meeting Ast of April 4. Casual Vacancy —_-The appointment is by the The appointment is done due to resignation _ members within 3 months of by the and other reasons _the recommendations of, Board and he will hold office til the next AGM -CAG (Comptroller and Auditor General) within 30 days, oR -BOD within the next 30 days Appointment Of Auditor Other Than Reti Auditor By A Special Notice ‘Where a person other than the retiring auditor is proposed to be appointed as an auditor, or where it is proposed that the retiring auditor shall not be re-appointed, a special notice under Section 115 of the companies Act, 2013, has to be given proposing that such a resolution would be moved at the next annual general meeting ng In case where the retiring auditor has completed a consecutive tenure of five years or, as the case may be ten years then such special notice can be avoided. For the purpose of special notice the relevant points are as under: + Ifthe auditor makes a representation in writing to the company and requests for a notification to the members, the company shall © State the fact of representation in any notice regarding the resolution © The copy of representation should be sent to those members by the company to whom notice of meeting is sent, whether before or after the receipt of representation. © if the copy of representation is not so sent , copy thereof should be filed with the Registrar. + On receipt of the special notice for removing the auditor, the company should send a copy of the same to the retiring auditor, + Such representation should be of a reasonable length and not too long. + The special notice should not be received by the company too late for the purpose of circulation to members. + Auditor may require the company to read out the representation in the meeting if i is not so notified to members because it was too late or because of company's default If the Tribunal is satisfied that the rights are being abused by the auditor based on an application either of the company or of any other aggrieved person, then: + the copy of the representation may not be sent, and hitpsiicloartax inislappoiniment-audtors sir2revre020 ‘Appointment of Audtor - Under Companies Act, 2013 + the representation need not be read out al the meeting. 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