15 July 2024
Appointing a new auditor for your company and conducting audits in your branch office involves following specific legal procedures under the Companies Act, 2013 and related rules. Here’s a step-by-step guide on how to proceed:
### 1. Appointment of New Auditor
#### For a Private Company:
1. **Board Meeting**: Convene a board meeting to approve the appointment of the new auditor. The board should: - Discuss and approve the appointment. - Fix the remuneration of the auditor.
2. **Intimation to Auditor**: After board approval, communicate with the proposed auditor to ascertain their eligibility and willingness to act as the company’s auditor.
3. **AGM Resolution**: Place the resolution for the appointment of the auditor before the shareholders at the Annual General Meeting (AGM) for their approval.
4. **Filing Form ADT-1**: Within 15 days of the AGM, file Form ADT-1 with the Registrar of Companies (ROC) to inform them about the appointment of the auditor.
#### For a Public Company:
The procedure is similar to that of a private company but involves additional compliance with rules specific to public companies under the Companies Act, 2013.
### 2. Conducting Audit in Branch Office
1. **Board Resolution**: Obtain a board resolution authorizing the audit of the branch office for the financial year 2018-19.
2. **Terms of Audit**: Define the terms of engagement for the audit, including scope, responsibilities, and reporting requirements.
3. **Audit Planning**: Plan the audit process considering the operations and transactions specific to the branch office.
4. **Audit Report**: Ensure the auditor prepares and submits the audit report in accordance with the auditing standards applicable under the Companies Act, 2013.
### Legal Procedure Summary:
- **Board Approval**: Obtain board approval for the appointment of the new auditor and for conducting audits in the branch office. - **Shareholder Approval**: Obtain shareholder approval at the AGM for the appointment of the auditor (if required). - **Form ADT-1**: File Form ADT-1 with the ROC within 15 days of AGM to inform them about the auditor's appointment. - **Audit Process**: Ensure compliance with auditing standards and prepare necessary documentation for the audit process.
### Additional Considerations:
- **Auditor’s Eligibility**: Ensure the auditor meets the eligibility criteria as per the Companies Act, 2013 and other relevant regulations. - **Compliance**: Adhere to all legal and regulatory requirements during the appointment process and audit conduct. - **Documentation**: Maintain proper documentation of all resolutions, approvals, and filings related to auditor appointment and audit conduct.
By following these steps and ensuring compliance with the Companies Act, 2013 and related rules, you can effectively appoint a new auditor and conduct audits in your branch office for the financial year 2018-19. It’s advisable to seek assistance from a qualified company secretary or legal advisor to ensure adherence to all legal requirements and procedural formalities.
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