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Auditor resigns in October 2018 for F.Y 2017-18 Audit

25 October 2018

Sir/Madam
An auditor of company resigns on date of October 2018 for F.Y 2017-18.
Issue arises that practicing members of ICAI reject the proposal of being appoint as auditor due to appointment after AGM date.
is there is any condition of solution that we can appoint a new auditor

Can we use casual vacancy if auditor resigns due to communication gap

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6 Replies

AMLAN12. (STUDENT) (120 Points)
Replied 25 October 2018

In case an auditor whether an individual or a firm has resigned before the expiry of his or her or its term then such a casual vacancy can be filled up by appointing a new auditor in place of it and then file ADT-1 to ROC

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aditya mohan (6 Points)
Replied 25 October 2018

But auditors don't want to do audit due to penal provisions of ROC
regarding auditor of appointment after AGM

AMLAN12. (STUDENT) (120 Points)
Replied 25 October 2018

if no casual vacancy has been filled then it will be a noncompliance to section 132 n automatically section 240 gets trigg3red

Ismail Shekh (57 Points)
Replied 27 October 2018

in what respect section 240 gets triggered......???

AMLAN12. (STUDENT) (120 Points)
Replied 27 October 2018

I'm sorry section 241 oppression n mismanagement gets triggered

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Neel Parikh (105 Points)
Replied 30 October 2018

Old auditor is resigning on October, that means he has done audit work w r.t FY 2017-18.

Now if u appoint some new auditor for remaining tenure of old auditor.. it's completely fine. Moreover, New auditor is completely safe even if the old auditor have done some mistakes in his auditing work.

File ADT 3 & then ADT 1

Note :- Since it's a resignation (and not a removal), old auditor need to give NOC to new auditor. (Although such NOC is not required to he attached in any e-form)