I want to know can an auditor be removed before completion of his tenure
Ex: In a pvt company the agm conducted in sep 2012 an auditor is appointed for fy 2012-13. But now company wants to remove the auditor before his term and want to conduct the audit for fy 2012-13 from another auditor. Can Company take this action and can the new auditor accept this appointment and if so what legal formalities and procedure both company and auditor have to do.?
Yes a Company can remove an auditor before the completion of his tenure. Company can pass this resolution in Board Meeting. The Old auditor have the right to be heard in the general meeting in front of share holders. The new auditor has to take no objection certificate from the old auditor. The old auditor might draw attetion to matters if he finds material mis statement.
Abic and Mani Chartered Accountants
Kottayam
B.Com
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