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Rotation of auditor

21 January 2018

If CA X had performed audit for last 4 yrs(2011-12 to 2014-15)
Can he appointed as auditor for yr 2016-17 , if he had not performed audit in yr 2015-16 ??

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6 Replies

Saketh D (76 Points)
Replied 21 January 2018

yes,he can be appointed as auditor for Year 2016-17

1 Like

CS Smreti (cs) (641 Points)
Replied 22 January 2018

section 139(2) prescribes a gap of 5 years

Saketh D (76 Points)
Replied 22 January 2018

That gap of 5Years is only if auditor has completed one term of 5 consecutive years.

CS Smreti (cs) (641 Points)
Replied 22 January 2018

yes it says consecutive...
if the said aud did nt finish his full term then his term is said to be ended on 2014-15.

Vedangi Deshmukh (112 Points)
Replied 22 January 2018

Thank you so much

chirag rajendra parekh (Final ca) (161 Points)
Replied 24 January 2018

An Auditor has to be appointed by the member at it's general meeting for a tenure of five years subject to the ratification of the appointment at the end of each year. An Auditor in case of firm cannot be appointed for a tenure of more than two consecutive terms of five years and in case of individual for a tenure of not more than a consecutive term of 5 years in case of specified companies. Accordingly an individual has to be appointed for a tenure of five consecutive years and his appointment needs to be ratified by the member at the end of fourth year for the purpose of the continuation of the appointment.
Thanks...