Under what circumstsances Two statutory auditor of a pvt ltd company be appointed?
This query is : Resolved
Quick Summary
Ca Subhash Kumar
(Querist)
16 September 2025
under what circumstsances Two statutory auditor of a pvt ltd company be appointed?
Dhirajlal Rambhia
(Expert)
16 September 2025
Appointment of joint auditors is not mandatory for all private companies but is permitted by Section 139 of the Companies Act, 2013. In cases where joint auditors are appointed, the company may allocate audit work between them and must clearly define their areas of responsibility in the audit report.
Circumstances when two statutory auditors (joint auditors) may be appointed include:
The private company voluntarily decides to have more than one auditor, often for operational or efficiency reasons.
The Articles of Association or shareholder resolutions specify joint audits.
Certain RBI guidelines or sectoral regulations for NBFCs, banks, or entities with large asset sizes may require joint auditors, especially when asset sizes exceed prescribed limits (e.g., for large NBFCs).
To comply with requirements of rotation and independence as stipulated under Section 139 and related rules, particularly relevant when rotation of auditors applies to companies with paid-up capital or borrowings above specified thresholds (like ₹20 crore or ₹50 crore for private companies).
The key legal reference is Section 139 of the Companies Act, 2013, which allows any company, including private companies, to appoint more than one auditor if they wish.
Circumstances when two statutory auditors (joint auditors) may be appointed include:
The private company voluntarily decides to have more than one auditor, often for operational or efficiency reasons.
The Articles of Association or shareholder resolutions specify joint audits.
Certain RBI guidelines or sectoral regulations for NBFCs, banks, or entities with large asset sizes may require joint auditors, especially when asset sizes exceed prescribed limits (e.g., for large NBFCs).
To comply with requirements of rotation and independence as stipulated under Section 139 and related rules, particularly relevant when rotation of auditors applies to companies with paid-up capital or borrowings above specified thresholds (like ₹20 crore or ₹50 crore for private companies).
The key legal reference is Section 139 of the Companies Act, 2013, which allows any company, including private companies, to appoint more than one auditor if they wish.
Dhirajlal Rambhia
(Expert)
19 September 2025
Good Luck...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- EPF ECR NEW RULES Sep 17th 2026
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
