First auditor

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2016 Can first auditor be appointed as subsequent auditor?!
If yes, what are the rotation compliance to be followed?
whether 1+4 years which in total 5 years or 1+5??

CS Peer mehboob

CS Peer mehboob (Expert)
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02 December 2016 First Auditor hold the office till the date of AGM. First Auditor can be appointed as Auditor of the company in AGM for 5 years. However, for rotation of auditor the period of his office will be counted from the time form ADT-1 is filed and since no form is generally filed for appointment of first auditor, therefore the period of his term will be counted from the date of his appointed as subsequant auditor by filing ADT-1.

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CA Pallav Singhania

CA Pallav Singhania (Expert)
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02 December 2016 Appointment Procedure of ﬁrst auditor
Section 139(6) of the companies act 2013, deals with the appointment of ﬁrst auditor of a company that is registered in India.
Here are the procedures that the company needs to follow for appointment of the ﬁrst auditor;

1. Within 30 days from the date of incorporation, the company needs to convey a board meeting by giving notice to all of its directors. Date of incorporation is the date that is mentioned in the certiﬁcate of incorporation.

2. In addition to other matters the company should also decide to pass a resolution for appointment of ﬁrst auditor of the company to hold oﬃce till the conclusion of the ﬁrst annual general meeting.

3. Before the appointment, company needs to obtain a written certiﬁcate from the ﬁrst auditor to the eﬀect that the appointment if made will be in accordance to the limits speciﬁed in the companies act 2013.

4. After the decision of board of directors, the auditor needs to be intimated within 7 days from the date of appointment.

As per the new companies act 2013, company is required to inform registrar of companies (ROC) in writing that auditor has been appointed by ﬁlling form ADT1 within 15 days from the meeting date in which auditor has been appointed.

However, such requirement is not applicable to the ﬁrst auditors as these provisions are applicable to the auditors appointed under section 139(1) of the companies act 2013 and ﬁrst auditors are appointed under section 139(6) of the companies act 2013.
This means, ﬁlling of form ADT1 is not required for ﬁrst auditor under companies act 2013.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2016 tq
but let me know if the first auditor can be appointed as subsequent auditor for 5 more years!!!

CS Peer mehboob

CS Peer mehboob (Expert)
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03 December 2016 Yes. if First auditor is appointed as subsequent auditor, he has to be appointed for 5 years from the date of AGM as per sec.139(1). his period as first auditor will not be counted, when he is appointed as regular auditor.

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