Change of auditor

Statutory Audit 714 views 3 replies

SUDIPTA BARUAH

TAX RETURN PREPARER

29 Points Posted on 22 March 2014

Dear Sir

Ours is a pvt ltd company, and all the accounting and company compliance works were handled by a CA . Because of timely non compliance we have to pay lots of late fines and interests in IT and ROC . ROC website reflects the status of our company as " under process of striking off" . the auditor cum CA has not filled the returns and other statutory reports inspite of clearing all fees. Hence we have lost confidence on the said auditor. Board of directors have asked him to resign and issued a formal letter, which he has refused to accept. As per him our company cannot appoint another auditor and will have to continue with him . now my query is that is there any rule like he said or what are the remedies an assesse have in such a situation. Please guide.

Replies (3)

Guest

you can change the auditor .. m not getting why he is refusing to accept that letter

Milind M. Kulkarni

Practicing CA

597 Points Posted on 25 March 2014

The existing auditor can be removed. Please refer Section 225 of the 1956 Companies Act or Section 140 of 2013 Companies Act which has not yet been enforced (I am talking about the specific section 140 of the new Companies Act). In both the sections, auditor has to be given a reasonable opportunity of being heard. However, 2013 Act requires a special resolution to be passed with prior approval of the central government. So, if you want to do it urgently, please complete the formalities before Section 140 of the 2013 Act becomes operative.

Milind M. Kulkarni

Practicing CA

597 Points Posted on 27 March 2014

I think after the central government notified 183 sections to become enforceable from 1 April 2014, including sections relating to Accounts and Audit (incl. section 140 as mentioned above), you have to compulsorily follow process stipulated in section 140 of the new Companies Act.