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Appointment of Statutory Auditor

Get Appointment of Statutory Auditor @1499/- (Professional Fees)

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WHAT IS APPOINTMENT OF AUDITOR

Appointment of First Auditor refers to an event where a company appoints an individual or a firm as an auditor in the first board meeting held within 30 days from the date of incorporation to hold office till the conclusion of the first AGM of the company. Further, when the first AGM of the Company is held, then the appointment of an auditor is initiated for a period of 5 years until the conclusion of the sixth AGM. The statutory auditor verifies the books of accounts and is registered with the company under the Companies Act, 2013, which is known as a statutory audit or company audit.

Before such appointment, written consent of the auditor and a certificate from him confirming that the appointment is as per the terms of the Companies Act and he satisfies the criteria provided in section 141 will be required. Form ADT 1 is required to be filed with MCA within 15 days from the date of such appointment.

According to section 139 (1) of the Companies Act, 2013, the appointment of the statutory auditor should be informed through a notice to the registrar of companies. This needs to be done within 15 days from the date of the appointment of auditor.

FEATURES

Increased Credibility Of Business

By appointing a statutory auditor for conducting a thorough audit of the books of accounts, the credibility and authenticity of the business improves. As the books of accounts are being verified by a registered auditor, it helps the business to avail loans faster and raise funds better.

Complying With Statutory Requirements

Appointment of statutory auditor assures that all the statutory requirements of the books of accounts are met. The management can be rest assured that they have performed their statutory as well as non-statutory duties such as corporate governance.

Internal Control Regulation

By conducting a statutory audit, the auditor gives feedback on the internal control of the organisation. This helps the company to reduce the risks and improve the performance of the company.

ELIGIBILITY CRITERIA

    • Every Company is required to appoint Statutory within 30 days from the date of Incorporation to hold office till the first AGM

DETAILS AND DOCUMENTS

    • Name of the Auditor
    • Full Address of the Auditor
    • Membership Number of auditor or auditor’s firm’s registration number
    • Income Tax permanent account number of auditor or auditor’s firm
    • email id of the auditor or auditor’s firm
    • Contact number of the auditor or auditor’s firm

Process for Appointment of Auditor

  • 1
    Identification of the Auditor

    The firm or the individual which is required to be appointed as the auditor is required to be identified.

  • 2
    Consent from Auditor

    The company circulates the letter to the auditor for receiving the letter of consent to be appointed as auditor.

  • 3
    Documentation

    Preparation of documents for the appointment of the auditor as required for filing.

  • 4
    Filing of Form

    Form ADT 1 for the appointment of an auditor is required to be filed within 15 days of passing resolution.

What We Deliver

    • Auditor Appointment Certificate
    • E-forms filed with MCA

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LITE

1499

  • Appointment of Statutory Auditor in Company with Less than 25 Lakh in Turnover (Including Govt fee)

Basic

2499

  • Appointment of Statutory Auditor in Company with Less than 50 Lakh in Turnover (Including Govt fee)

Pro

3999

  • Appointment of Statutory Auditor in Company with Less than 1 Crore in Turnover (Including Govt fee)

Answer to the Question Why us?

  • In-House
    Experienced
    Professionals
  • Compliance
    Tracking and
    Reminders
  • Regular
    Customer
    Education
  • Stellar
    Support and
    Response

Frequently Asked Questions (FAQ)

A person who is a chartered accountant or a firm with a majority of partners practising in India can be appointed as the auditor of a company. A limited liability partnership can be appointed as the auditor of the company, but only chartered accountant partners will be authorised to act and sign on behalf of the firm.

Appointment of First Auditor of the company is done either in the first board meeting that has to take place within 30 days of incorporation, or if the appointment could not take place in the board meeting, then a general meeting needs to be held within 90 days of incorporation to hold office till the conclusion of the first AGM. Further, at the first annual general meeting, an auditor who shall hold office from the conclusion of that meeting until the conclusion of its sixth annual general meeting is appointed.

  1. A corporate body other than a limited liability partnership registered under the Limited Liability Partnership Act, 2008;
  2. an officer or employee of the company;
  3. A person who is a partner, or who is under the employment of an officer or employee of the company;
  4. A person who, or his relative or partner is holding any security of or interest in or is indebted to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of such amount as may be prescribed; or has given a guarantee or provided any security in connection with the indebtedness of any third person to the company, or its subsidiary, or its holding or associate company or a subsidiary of such holding company, for such amount as may be prescribed;
  5. a person or a firm who, whether directly or indirectly, has a business relationship with the company, or its subsidiary, or its holding or associate company or subsidiary of such holding company or associate company of such nature as may be prescribed;
  6. a person whose relative is a director or is in the employment of the company as a director or key managerial personnel;
  7. a person who is in full-time employment elsewhere or a person or a partner of a firm holding an appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding an appointment as auditor of more than twenty companies;
  8. a person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction;
  9. a person who, directly or indirectly, renders any service referred to in section 144 to the company, or its holding a company or its subsidiary company.

Yes, in case of casual vacancy auditor appointment can be done by the board of directors within thirty days only if casual vacancy is not a result of the resignation of an auditor. If that is the case, then the appointment will also have to be approved by the company at a general meeting held within three months of the board recommendation.

Yes, the auditor can be removed prior to the expiry of his term only via a special resolution of the company. This can only be done after securing prior written approval of the Central Government.

Form ADT 1 is required to be filed within 15 days of appointment with attachment:
  1. Consent and certificate from auditor for eligibility and appointment
  2. Board Resolution or Shareholder’s resolution for the appointment of auditor
  3. Intimation by the Company for Auditor appointment

The first auditor of the company is appointed to hold office up to the conclusion of the first annual general meeting of the company as per section 139 (6) of the Companies Act.

No, it is not mandatory to file any form with the ROC on the appointment of the first auditor.

In case of a casual vacancy, the board of directors will make a recommendation in the board meeting within 30 days of the resignation. The recommendation requires the approval of the members within three months from the date of the board meeting.

No, the director does not have the power to remove the auditor.

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