Appointment of an auditor

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 December 2009 What are the steps a public company should take before appointing an auditor?

What are the steps an auditor should take before accepting appointment?

In the statutory report, details of auditor of the company are asked. Is it mandatory that the auditor be appointed before we give such details or is t okay to give the details of the chosen auditor who is yet to be appointed

Please give me a format of a resolution to appoint an auditor

Arjuna Raina

Arjuna Raina (Expert)

26 December 2009 Answer to first line:
1.If the New auditor is to be appointed:The Auditor is appointed by the shareholders at an AGM.
2. Tenure:Till the conclusion of next AGM
3.If auditor can't be appointed at an AGM then auditor will be appointed by CG (7 days intimation)
4.company has to check Cealing limit of an auditor
5. Ordinary resolution to be passed.

Answer to second line:
1.If the auditor is appointed he should get all the reasons from the retiring auditor why he has not accepted the appointment.
2.Auditor has to inform ROC.
3.Cealing limit

Answer to third line:
Yes it is mandatory to appoint first auditor.
1.IF the company is newly formed the Auditors are to be appointed by the Board of Directors within 30days of the incorporation of the company. in this Auditor will not intimate to ROC regarding the appointment.