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AUDITOR APPOINTMENT in case of resignation

Pvt ltd 46 views 1 replies

Aditya Karan

1 Points Joined May 2025

Hai all

A company Incorporated in 2018 failed to Audit FY21-22,FY22-23,FY23-24. Previous Auditor Resigned on May 2024 and from that the post is vaccant . Now the company wants to file FY23-24. What should be date of EGM and Auditor appointment ? What will be the penalty for this? What should be the date for Financials ?

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8756 Points Joined December 2011

Resolving the Issue of Missed Audits and Filing -

*Appointment of New Auditor*: The company needs to appoint a new auditor to conduct the audits for the missed years. -

*Extraordinary General Meeting (EGM)*: The company should convene an EGM to appoint the new auditor. Date of EGM and Auditor Appointment -

*EGM Date*: The EGM can be convened on a date that allows for timely appointment of the new auditor. -

*Auditor Appointment Date*: The auditor should be appointed for a term that covers the missed audit years. Penalty for Missed Audits -

*Penalty under Companies Act*: The company may face penalties under the Companies Act, 2013, for failing to comply with audit requirements.

- *Penalty Amount*: The penalty amount would depend on the specific provisions of the Act and the circumstances of the case. Financials Date -

*Financial Statements*: The financial statements for FY23-24 should be prepared as of March 31, 2024. -

*Audit Report*: The audit report should be dated after the completion of the audit procedures. Steps to Resolve the Issue

1. *Convene EGM*: Convene an EGM to appoint a new auditor.

2. *Appoint Auditor*: Appoint the new auditor for a term that covers the missed audit years.

3. *Conduct Audits*: Conduct audits for the missed years (FY21-22, FY22-23, and FY23-24).

4. *File Financial Statements*: File the financial statements and audit reports for the missed years.

5. *Pay Penalties (if applicable)*: Pay any penalties imposed by the regulatory authorities.

Consult with a company secretary or auditor to ensure compliance with regulatory requirements.

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