If a company wish to change their Auditor, what is the procedure? How it will reflect on the company? as well as auditing firm? Is there any complications? Is there any intimations regarding change of auditor to concern RoCs, IT department & etc.
01 February 2009
There are two instances under which a new auditor will be appointed.
Firt, the existing auditor intimates the company that he is resinging or he is disquialified to be a auditor then he will intimate the same to company, the company has to conduct egm by giving 21 days notice alongwith the name of the new auditor. After the meeting the company has to file form 23 and audtor has to file form 23B.
Secondly the auditor will resign only at the agm, then you have to inform the shareholders about his intention to retire and the proposed new auditor. Then after the appointment the company has to file form 23 and the auditor has to file form 23B.
However there is another option that the company can remove the auditor and reappoint a new person. Procedure one to be follwed. However an opportunity should be given to the auditors that why therey are being removed.
NO complications except that you should adhere to the procedures and also you should file necessary forms.
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