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Section 139(2) - Rotation of Auditors
If an auditor has audited a private company for more than 10 years and now the company wants to become a listed company. Does the auditor have to resign when the company goes public due to section 139(2) or can he be the auditor for a term of 5 years before expiry of his term?
Replies (4)
The same auditor cannot be appointed again as they have completed two terms of five years
5 years of interval period should be there once they complete their tenure as per section 139(1)...
As per Section 139, read with rule 5 of Companies Auditor Rules, the provisions of rotation of Auditor shall apply on listed Company. If the audit firm is already appointed for the period of 10 years then same audit firm shall not be re-appointed for another term. There shall be minimum cooling period of 5 years after completion of their respective tennre as per the provisions of the Companies Act 2013
the period served by the audit firm to the pvt ltd. shall be considered to calculate 10 yrs on case the co. gets listed in Current year
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