Board of director appointment of first auditor letter

Pvt ltd 15457 views 4 replies

Preeti (Team_GSTSoln)

Team GST Experts

1926 Points Joined April 2011

Date

Auditor firm name.

city

Sub: Appointment as First Statutory Auditor & other service provider for the Co.

Dear Sir

We are pleased to inform you that your firm has been proposed to be appointed as Statutory Auditor for conducting the audit under section 139(6) of the Companies Act,2013 till the conclusion of First Annual General Meeting on such remuneration as may be determined by the Board of directors of the company ,in their 1st Board Meeting which is going to be held on Date of first B.M.

Further proposed that being an auditor Auditor firm name will provide all the services as will approved by the Board of Directors except the services restricted u/s 144 of the Companies Act,2013.

We expect from your firm an acceptance letter for the appointment as well as certificate w.r.t satisfaction of the criteria provided in section 141 of Companies Act, 2013.

Further we need a confirmation that your firm appointment if made,it shall be in accordance with the condition as may be prescribe under Rule 4 of Companies (Audit & Auditors )Rules, 2014.

Thanking You,

Yours Faithfully,

For Company name

Director

Replies (4)

Sachin Aggarwal

2 Points Joined February 2017

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Kriti Bareja

Company Secretary

45 Points Joined August 2015

appointment letter to first auditor is given after holding first board meeting. if we are mentioning word 'proposal' as mentioned above,then it cannot be considered as letter of appointment. proposal is made before appointment in board meeting while letter of appointment is given after such appointment in the meeting.

Preeti (Team_GSTSoln)

Team GST Experts

1926 Points Joined April 2011

Dear Kriti

Your query is relates to old co. act.

As per new co. act 2013 , u have to first give the auditor a proposal letter -whether he is interested to get appoint or not /fulfilling all the requirements. If yes then u will receive acceptance letter from auditor & after this in your first board meeting you will pass the resolution.

My above letter is just a step 1.

follow the below procedure:-

Intimate the proposed auditor(s) regarding the intention of appointing him/it as auditor and ask whether he/ it is eligible and not disqualified to be appointed as auditor of the company. Obtain consent & certificate from auditor. If audit committee required to be constituted under section 177, then obtain its recommendation (Section 139(11)). Call Board meeting. Approve the appointment of auditor at the first Board Meeting. Intimate the auditor and file with ROC form ADT-1(to be attached in form GNL-2 as per MCA circular 09/2014 dated 25th April, 2014) within 15 days.