How and when should auditor be appointed?

Section 357 of the Companies and Allied Matters Act (CAMA) requires every company to appoint an Auditor or Auditors at every Annual General Meeting (AGM) by way of approval of 75\% or three-quarters of the members present and voting at the AGM. Such Auditor(s) appointed at the AGM shall hold office until the next AGM.

How is the first auditor appointed?

As per sub-section (1) of Section 139 of the Act, the first auditor of a non-government company shall be appointed by the Board of Directors within thirty days from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of the company, who …

How auditors are appointed and remunerated?

1. When an auditor is appointed by the Board of Directors, (First auditors and Casual vacancy), the remuneration is fixed by the board of directors. 2. When an auditor is appointed by the Central Government, the Central government fixes the remuneration.

How is auditor appointed by shareholders?

At each Annual General Body meeting of the company, the shareholders shall appoint an auditor for the company. The acceptance or refusal of such appointment should be intimated by the auditor to the Registrar of Companies within 30 days of the receipt of the intimation of such appointment.

What are the documents required for appointment of auditor?

Documents Required

• Name of the new auditor firm.
• Address of the new auditor firm.
• Email address and PAN number.
• A number of years for which the firm is appointed.
• Details of the resigning auditor firm.
• Appointment date of the new auditor firm.

How an Auditor is appointed under the Companies Act 2013?

In case of Government Companies the first auditor shall be appointed by the Comptroller and Auditor General of India within sixty days from the date of incorporation of the Company and in case the Comptroller General of India does not appoint such auditor within the said period of time, then the Board of Director of …

Can Auditor be appointed for more than 5 years?

Auditor can be appointed for less than 5 years. However, just keep in mind that this period will be considered as one term and he cannot be reappointed for more than two terms even if total period is less than 10 years.

Who appoints internal auditor?

the Board of directors
An internal auditor is an auditor who is appointed by the Board of directors of the company in order to carry out the internal audit function.

Is qualified for appointment as auditor of a company?

(1) A person shall be eligible for appointment as an auditor of a company only if he is a chartered accountant in practice. (2) Where a firm is appointed as an auditor of a company, only the partners who are Chartered Accountants in practice shall be authorised by the firm to act and sign on behalf of the firm.

Can auditor be appointed for 3 years?

However, the Section 139 of Companies Act, 2013 states that an audit firm shall be appointed for a term 5 consecutive years [sub-section (1)], but not more than 2 terms of 5 consecutive years [sub-section (2), applicable for listed and prescribed classes of companies].

Can auditor be appointed for less than 5 years?

According to Section 139(2): No Company can appoint any Auditor for a period less than 5 year.

How are auditors appointed in a company?

Appointment of auditors by Share Holders 1. At each Annual General Body meeting of the company, the shareholders shall appoint an auditor for the company. 2. The auditor so appointed shall h old office until the conclusion of the subsequent annual general body meeting. 3. The company should intimate

What is the procedure to appoint an auditor at AGM?

1. Appointment: Every company shall appoint an individual or firm as an auditor of the company at the first AGM. The appointment includes Re- Appointment. Firm Includes LLP (Limited Liability Partnership). 2.

What happens if the Board of directors fails to appoint first auditors?

However, in a case where the Board of Directors fails to appoint the first auditors of the company they shall inform the members of the Company. Thus, the members shall appoint the first auditors of the company within ninety days at an extraordinary general meeting.

Who appoints the Auditor of a government company in India?

In case of a Government company, the first auditor shall be appointed by CAG of India within 60 days from date of registration of the company. Such a person shall hold the office until the conclusion of the First Annual General Meeting. For a better understanding kindly refer below: