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Audit appointment for less than 5 years

Abhishek Jain (Manager-Finance) (64 Points)

20 October 2021  

Hi All

Please advise

A private company appointed statutory auditor for a term of 3 years then reappointed him again for another period of 3 years

Can the firm again be reappointed for period of 3 years. As total period is less than 10 years

Thanks in advance

 2 Replies

Sourav (Student) (23801 Points)
Replied 20 October 2021

Firm of auditors can be re-appointed for a period of 10 years

CA Amrita Chattopadhyay (Audit & Assurance) (10207 Points)
Replied 05 November 2021

As per section 139 of the Companies Act, a sole proprietor can be appointed for a term of 5 years and  a partnership firm for a period of 10 years. However, there has to be rotation of partner after 5 years. 

In the stated case, the firm can be further appointed for 3 years as it is less than 10 years. However, there has to be rotation of partners. 

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