Appointment and Removal of Auditor

appointment-and-removal-of-auditor

An audit is the evaluation or analysis of a company’s financial reports that include cash flow statements, balance sheet, income statement, etc. An auditor performs the audit and verifies all the documents submitted, returns filed, income declared etc., with the financial statements of the company. Apart from ensuring the authenticity and reliability, he/she also ensures that the account books and financial statements are in compliance with the provisions mentioned under the Income Tax Act, GST and other laws. The role of an auditor is very prominent in all business operations in India and each company needs to appoint one.

• A non-government company needs to appoint the first auditor by Board of Directors within 30 days of registration, auditor at first AGM by the members till the 6^th AGM, and any subsequent auditor by the members till 6^th AGM’s conclusion
• A listed company needs to appoint its first auditor through its Board of Directors within 30 days, auditor at first AGM by the members for max. 5-10 consecutive years, and any subsequent auditor by the members for the same term
• A government company has its first auditor appointed by the Comptroller and Auditor General of India within 60 days or by its Board of Directors within 30 days, the auditor at first AGM is appointed by the same authority by the end of October, and any subsequent auditor following the same trend

In fact, Sections 139 to 148 of the Companies Act, 2013 give a detailed summary of the role of an auditor & other requirements including their appointments & removal. At Registration Karwalo Services India Private Limited, we help you appoint an auditor to simplify the process of financial reports auditing.

Registration Karwalo Services India Private Limited has an in-house team of qualified and experienced chartered accountants and professionals, who handle the client coordination and complete the auditor appointment procedure as per the stated norms. With our services, we assist the board of directors of a company to appoint the auditor. We cross-check the proof of qualifications of the auditor and ensure they are in compliance with Section 141 of the Companies Act. Next, to provide the receipt of intimation of the appointment, we fill form ADT -1 within 15 days of the meeting in which appointment is confirmed. Besides, we inform our clients whether the auditor has accepted or refused the appointment.

In addition to providing auditor appointment services, Registration Karwalo Services India Private Limited also caters to auditor removal needs of its clients. We follow the given guidelines for the legal removal of any auditor from the company.

• If a company wants to remove its auditor, it can do so by filing Form ADT-2 after the Board has passed the resolution and within 30 days of submitting application to Central Government
• Under Section 140(2), an auditor can legally resign from the company by filing Form ADT-3

So, to remove an auditor or an auditing firm, before the expiry of a term, contact us to pass a special resolution and get him/her removed. We also provide assistance to remove an auditor after the expiry of a term by sending a notice for considering the resolution for an appointment.