Query regarding appointment of auditor

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Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2014 If the existing auditor resign from his post willingly than what will be the procedure for appointment of new auditor and what are the forms required to file with ROC ?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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26 December 2014 Procedure – where casual vacancy arises due to resignation of existing auditor

1. Intimate the proposed auditor(s) regarding the intention of appointing him/it as auditor and ask whether he/ it is eligible and not disqualified to be appointed as auditor of the company.
2. Obtain consent & certificate from auditor.
3. If Audit Committee required to be constituted under section 177, then obtain its recommendation (Section 139(11)).
4. Call Board meeting for the purpose of following:-
• Appointment of auditor in casual vacancy.
• Considering that the qualification & experience are commensurate with the size & operations of the company.
• Recommending the members to approve the appointment.
• Calling of EGM(to be held within 3 months from date of Board meeting).
5. Intimate the Auditor and file with ROC form ADT-1 within 15 days of EGM(since the appointment is not final until approval of members).

RESIGNATION OF AUDITOR
As per section 140(2) the Auditor who has resigned from the company shall file within a period of 30 days from the date of resignation, a statement in the prescribed form with the company and ROC indicating the reasons and other facts as may be relevant with regard to his resignation in form ADT-3

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