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Re-appointment of Statutory Auditor for mandatory 5 years?

11 January 2021

If a Statutory Auditor Firm is reappointed for Second term , is it mandatory as per Companies Act to re appoint them for 5 years in their second term?

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 11 January 2021

Yes it is mandatory for appointment for 5 years but any statutory auditor may be removed from his office even before his expiry of term

1 Like

pritesh (delhi) (720 Points)
Replied 12 January 2021

Yes it's mandatory for all types of companies.

Kapadia Pravin (17249 Points)
Replied 12 January 2021

It is not mandatory to re-appoint in second term. Company can have colling off period of 5 years

Chirag (Professional) (1979 Points)
Replied 13 January 2021

For listed companies and other kind of prescribed companies , Auditor or audit firm may be appointed for One/two Term of less than 5 Years (as the case may be) for all other companies ,auditor should be appointed for 5 years (and no concept of rotation is applicable ).

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cskrishna panda (3 Points)
Replied 13 January 2021

Hi chirag, any citation in company's act or reference anywhere , where retiring auditor firm in their second term can be Re-appointed for less than five years?