We have a Pvt. Ltd. company registered in Chennai, now we are planning to audit it for FY 2018-19 in our branch office Delhi. The current auditor is in present Chennai but we want to change the auditor also. So, please guide what are procedures to change the auditor and can we do audit in our branch office. Kindly let me know in detail at earliest.
12 July 2024
Certainly, here are the procedures and considerations for changing the auditor and conducting the audit in your branch office:
### Changing the Auditor:
1. **Board Resolution**: A board meeting should be convened to pass a resolution for changing the auditor. This resolution should state the reasons for changing the auditor and nominate the new auditor.
2. **Intimation to Existing Auditor**: Inform your current auditor about the decision to change and ensure there are no objections or pending dues with them.
3. **Appointment of New Auditor**: Once the resolution is passed, appoint the new auditor through another board resolution. The new auditor must consent to their appointment and provide their eligibility certificate as required under the Companies Act, 2013.
4. **Filing with ROC**: Within 15 days of appointing the new auditor, file Form ADT-1 with the Registrar of Companies (ROC) to inform them about the change in auditor.
### Conducting Audit in Branch Office:
1. **Audit Location**: The audit can be conducted at any location, including your branch office in Delhi. The auditor appointed should be able to conduct the audit effectively at that location.
2. **Coordination**: Coordinate with your new auditor regarding the audit process, timing, and logistics related to conducting the audit at the branch office. Ensure they have access to all necessary documents and information.
3. **Audit Committee**: If your company has an audit committee, involve them in the process and keep them informed about the change in auditor and the audit location.
4. **Audit Report**: The audit report should be prepared in accordance with the auditing standards and submitted to the company’s board of directors within the stipulated time after completion of the audit.
### Additional Considerations:
- **Communication**: Ensure clear communication with both the existing and new auditors throughout the transition process.
- **Compliance**: Adhere to all legal and regulatory requirements regarding the change of auditor and conduct of audit as per the Companies Act, 2013.
- **Professional Fees**: Negotiate and agree upon the audit fees with the new auditor for conducting the audit in Delhi.
By following these procedures and considerations, you should be able to smoothly change the auditor and conduct the audit at your branch office in Delhi for FY 2018-19. If you encounter specific legal or procedural questions during the process, consulting a professional auditor or legal advisor would be advisable.
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