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Conversion of auditor from proprietor to llp

Co Act 2013 344 views 2 replies

jasmeet

26 Points Joined November 2014

Hello,

I have a query regaridng the conversion of auditor from proprietor to LLP.

When the auditor was appointed in the company he was a single auditor, now his firm is converted into LLP. The company is required to file ADT-1 with the ROC. But is it required to file ADT-3 also?

Please suggest your valuable view on the same.

Thanks!!

Replies (2)

Sunita Bisht

Article Trainee

91 Points Joined March 2014

Form ADT 3 is for resignation. Firstly, auditor will resign then company will file for ADT 1.

Sudhir Todkar

CS Professional

1021 Points Joined April 2017

Step1 : ADT - 3 is to be filed by the Auditor of the at the time of resignation with in 30 days. If the auditor fails to inform the ROC about the resignation then there may be penalty of Rs. 50,000/- to 5 lacs.

Step 2 : ADT 1 if files when company appoint LLP as an auditor after conversion.

My Query --> If he resign from company his tenure (which may be less than or equal to 5 years) will be over. So how he can continue as Auditor of that company indirectly by converting into LLP (Seperate Legal Entity).