02 December 2016
Can first auditor be appointed as subsequent auditor?! If yes, what are the rotation compliance to be followed? whether 1+4 years which in total 5 years or 1+5??
02 December 2016
First Auditor hold the office till the date of AGM. First Auditor can be appointed as Auditor of the company in AGM for 5 years. However, for rotation of auditor the period of his office will be counted from the time form ADT-1 is filed and since no form is generally filed for appointment of first auditor, therefore the period of his term will be counted from the date of his appointed as subsequant auditor by filing ADT-1.
02 December 2016
Appointment Procedure of first auditor Section 139(6) of the companies act 2013, deals with the appointment of first auditor of a company that is registered in India. Here are the procedures that the company needs to follow for appointment of the first auditor;
1. Within 30 days from the date of incorporation, the company needs to convey a board meeting by giving notice to all of its directors. Date of incorporation is the date that is mentioned in the certificate of incorporation.
2. In addition to other matters the company should also decide to pass a resolution for appointment of first auditor of the company to hold office till the conclusion of the first annual general meeting.
3. Before the appointment, company needs to obtain a written certificate from the first auditor to the effect that the appointment if made will be in accordance to the limits specified in the companies act 2013.
4. After the decision of board of directors, the auditor needs to be intimated within 7 days from the date of appointment.
As per the new companies act 2013, company is required to inform registrar of companies (ROC) in writing that auditor has been appointed by filling form ADT1 within 15 days from the meeting date in which auditor has been appointed.
However, such requirement is not applicable to the first auditors as these provisions are applicable to the auditors appointed under section 139(1) of the companies act 2013 and first auditors are appointed under section 139(6) of the companies act 2013. This means, filling of form ADT1 is not required for first auditor under companies act 2013.
03 December 2016
Yes. if First auditor is appointed as subsequent auditor, he has to be appointed for 5 years from the date of AGM as per sec.139(1). his period as first auditor will not be counted, when he is appointed as regular auditor.