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Appointment of auditor

Others 322 views 4 replies

Rahul Dumra

Tax Associate

23 Points Posted on 11 December 2016

If a company appoints an individual auditor and keep him for 4 consecutive years and then in next AGM does not retify him instead appoints a new auditor. And again after 1 year appoints the first individual as auditor wich was appointed earlier. Now can we say that this individual can work as an auditor for 5 consecutive years or previous 4 year would also be counted here irrespective of the fact that there was a 1 year gap in between his tenure?

Replies (4)

ankita gandhi

student

5908 Points Posted on 11 December 2016

Private limited company having paid up share capital of₹20 CR are applicable for rotation of directors. After completing 4 hears ex auditor can be appointed for one year and then there should be cooling period of 5 years.
So instead of appointing first a

ankita gandhi

student

5908 Points Posted on 11 December 2016

So instead of appointing first auditor now, go for other and give him cooling period of 5 years continually, and then appoint him.

Guest

His tenure will be counted as one period irrespective of the period he hold.. for example if I hold 1 year as auditor and resigned.. Uh can treat my tenure as Deemed 5 Yrs..and I can't be appointed as auditor for further 5 more years from my date of resignation... in you're case his tenure will be 4 years.. he can't be eligible for further period of 5 years from resignation.. hope U understand what I Mean to convey