Attestation, Audit & Assurance Services
Appointment of Auditor
At N D Savla & Associates, we assist companies in complying with the statutory requirements for the appointment of auditors under the Companies Act, 2013. From preparing the required documents to filing forms with the Registrar of Companies (RoC), our team ensures a smooth and compliant process.
Documents Required for Auditor Appointment
When appointing a new auditor, a company must file the following documents with the RoC:
Form MGT-14 – Along with proof of the board resolution.
Form ADT-1 – Mandatory filing for auditor appointment.
Additional details to be submitted to the RoC:
Name, address, email, and PAN of the new auditor firm
Number of years of appointment
Details of the outgoing/resigning auditor
Date of appointment of the new auditor
Digitally signed Form ADT-1 with the company director’s signature
Procedure for Appointment of Auditor
Only a practising Chartered Accountant (CA) or CA firm can be appointed as an auditor.
Before appointment, the auditor must provide:
Written consent for appointment
Certificate confirming eligibility under Section 141 of the Companies Act, 2013
Once consent is received, the Board of Directors passes a resolution to appoint the auditor.
The appointment must be communicated to the RoC within 15 days through Form ADT-1.
First Auditor Appointment
The first auditor of a company is appointed by the Board of Directors within 30 days of incorporation.
If the Board fails, the members must appoint an auditor within 90 days at an Extraordinary General Meeting (EGM).
The first auditor holds office until the conclusion of the first Annual General Meeting (AGM).
For Government companies, the first auditor is appointed by the Comptroller and Auditor General (CAG) of India within 60 days of incorporation.
Subsequent Auditor Appointment
If the Board does not appoint an auditor within 30 days of incorporation, the matter is referred to the members at an EGM.
If no auditor is appointed or reappointed at an AGM, the existing auditor continues until a new appointment is made.
Auditor Appointment in Listed Companies
Listed companies follow stricter rules:
An individual can be appointed as an auditor for one term of 5 consecutive years.
An audit firm can be appointed for two terms of 5 consecutive years.
Mandatory rotation of auditors ensures independence and transparency.
