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Auditor
Define Auditor,Appointment of an Auditor, Removal
and Resignation of an Auditor.
Definition of auditor
An auditor is a person authorized to review and verify the
accuracy of financial records and ensure that companies
comply with tax laws.
APPOINTMENT OF AUDITOR
● Every company must elect an auditor at its first annual general meeting.
● The auditor shall serve from the meeting's conclusion until the conclusion
of the company's sixth annual general meeting.
● An Auditor is appointed by the company members by the way which the
company prescribed.
● After deciding he/she/firm as an Auditor of their company,the company
should ask a return consent from the auditor stating an appointment
request to serve as an auditor to their company.
● After the above process the auditor should file a notice to the register
stating the willingness to serve as an auditor of this company, within
fifteen days of the meeting in which the auditor is appointed.
1. A SINGLE PERSON CAN SERVE AS AN AUDITOR FOR MORE THAN ONE
TERM OF FIVE SUBSEQUENT YEARS.
(Under section 141)
2. certified firm of auditors can work for more than two
periods spanning five straight years.
● In case of an government company:
The Comptroller and Auditor-General of India must, within
180 days of the commencement of the financial year, appoint
an auditor who is properly authorised to be appointed as an
auditor of companies under this Act for any government
company or any other company owned or controlled, directly
or indirectly, by the Central Government, by any State
Government or Governments, or partly by the Central
Government and partly by one or more State Governments.
Non government companies:
The first auditor of a corporation
other than a government corporation
shall be appointed by the Board of
Directors within thirty days of the
date the corporation was
registered. If the Board fails to
make the appointment, it shall
notify the company's members, who
shall make the appointment within
ninety days at an extraordinary
general meeting. The auditor shall
serve until the conclusion of the
first annual general meeting.
Removal of auditor
1. The auditor appointed under Section 139 may be removed
from his office before the expiry of his term only by a
special resolution of the company, after obtaining the
previous approval of the Central Government on that
behalf in the prescribed manner. Provided that before
taking any action under this subsection, the auditor
concerned shall be given a reasonable opportunity of
being heard.
Resign of auditor
● The auditor who resigned from the company must file a
statement in the prescribed form within thirty days of
the date of leaving with the company and the Registrar,
and in the case of companies covered by subsection (5) of
Section 139, the Comptroller and Auditor-General of
India. The statement must include the reasons for the
auditor's resignation as well as any other information
that may be appropriate.

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Auditor.pdf

  • 1. Auditor Define Auditor,Appointment of an Auditor, Removal and Resignation of an Auditor.
  • 2. Definition of auditor An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.
  • 3. APPOINTMENT OF AUDITOR ● Every company must elect an auditor at its first annual general meeting. ● The auditor shall serve from the meeting's conclusion until the conclusion of the company's sixth annual general meeting. ● An Auditor is appointed by the company members by the way which the company prescribed. ● After deciding he/she/firm as an Auditor of their company,the company should ask a return consent from the auditor stating an appointment request to serve as an auditor to their company. ● After the above process the auditor should file a notice to the register stating the willingness to serve as an auditor of this company, within fifteen days of the meeting in which the auditor is appointed.
  • 4. 1. A SINGLE PERSON CAN SERVE AS AN AUDITOR FOR MORE THAN ONE TERM OF FIVE SUBSEQUENT YEARS. (Under section 141) 2. certified firm of auditors can work for more than two periods spanning five straight years.
  • 5. ● In case of an government company: The Comptroller and Auditor-General of India must, within 180 days of the commencement of the financial year, appoint an auditor who is properly authorised to be appointed as an auditor of companies under this Act for any government company or any other company owned or controlled, directly or indirectly, by the Central Government, by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments.
  • 6. Non government companies: The first auditor of a corporation other than a government corporation shall be appointed by the Board of Directors within thirty days of the date the corporation was registered. If the Board fails to make the appointment, it shall notify the company's members, who shall make the appointment within ninety days at an extraordinary general meeting. The auditor shall serve until the conclusion of the first annual general meeting.
  • 7. Removal of auditor 1. The auditor appointed under Section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government on that behalf in the prescribed manner. Provided that before taking any action under this subsection, the auditor concerned shall be given a reasonable opportunity of being heard.
  • 8. Resign of auditor ● The auditor who resigned from the company must file a statement in the prescribed form within thirty days of the date of leaving with the company and the Registrar, and in the case of companies covered by subsection (5) of Section 139, the Comptroller and Auditor-General of India. The statement must include the reasons for the auditor's resignation as well as any other information that may be appropriate.