Welcome to Filingpoint Auditor Appointment in legal Expert +91 72999 72500
In every business, there is a need to assess the financial statements and data of the company. This assessment is called auditing. This is done by professionals who are known as Auditors. An auditor is a person who has been trained to examine the financial documents of the companies. These documents are assessed and verified by the auditor to ensure that they give a true and fair view of the financial position of the company. In addition, the auditor is also responsible for ensuring that the accounts are in order.
An auditor must be a qualified individual who is registered as a Chartered Accountant under the Chartered Accountant Act 1949. The auditor must be eligible to practice in India. If the person is a partner in a firm, the firm must have at least two partners who are qualified as chartered accountants. Moreover, the auditor must not have given any guarantee or security in connection with any indebtedness of the company.
The Companies Act demands that the board of directors appoint the auditor within 30 days of the date on which the company was registered. The directors of the company must recommend the auditor to be appointed by the company, and the desired professional can then be chosen within 3 months of the recommendation. If the company is a listed or specified company, the auditor should be appointed for a consecutive period of 5 or 10 years.
In case the auditor resigns, the company is duty-bound to fill the casual vacancy as soon as possible. The resigning auditor must provide the company with a resignation letter stating the date of the letter, and reasons for the resignation. The company should hold a board meeting to discuss the letter, and then pass a resolution to accept the resignation. The company must also ensure that the resigning auditor files Form ADT-3 with the ROC.
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