Welcome to Filingpoint Auditor Resignation in legal Expert +91 72999 72500
Filingpoint company's auditor is an authorised person who verifies and reviews the accuracy of financial records. They are a key stakeholder in the company and can help prevent fraud by flagging discrepancies in methods used to boost profitability. In case of a resignation, the auditor has to submit a duly signed letter and Form ADT-3 (Annexure A) to the Registrar of Companies within 30 days.
If the ROC does not receive this form within that period, then the auditor will be liable to pay penalties depending on the duration of delay. The recent amendment in the Companies Act, 2020 has increased maximum penalty for failure to file the form by an auditor to Rs 2 lakh.
However, some auditors are resigning mid-term without giving any valid reasons to the company. Investors need to keep track of these developments and assess the impact of this.
For instance, the stocks of Manpasand Beverages fell sharply after Deloitte Haskins & Sells resigned from the company in May 2018, citing non-sharing of crucial data with the management.
Another case which grabbed headlines was the resignation of auditors from Indian Bank after the US short seller Hindenburg Research highlighted alleged "shady transactions" in the group. The company later replaced Deloitte Haskins & sells with MSKA and Associates as the statutory auditors.
Contact Filingpoint Auditor Resignation in Vadapalani +91 72999 72500
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