Company Audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2010 One Pvt Ltd company approach me for company audit as auditor is required to file acceptance at the beginning of the year, now can i accept the same, as company approaches now????

Ankur Garg

Ankur Garg (Expert)
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17 November 2010 Filing of acceptance at the beginning of the year is not mandatory. Filing time start from the date of appointment and acceptance...

So you can accept the appointment at any point of time.

Plz tell---are you first auditor of the company?

Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2010 Whether filing of acceptance in Form 20B will be required late additional fess,.
Appointing as subsequent auditor????

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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19 July 2024 Yes, you can accept the audit assignment from the Private Limited company even though they have approached you after the beginning of the year. Here are the key points to consider:

1. **Acceptance of Auditor**: According to Section 139 of the Companies Act, 2013, an auditor needs to file Form ADT-1 (Appointment of Auditor) with the Registrar of Companies (RoC) within 15 days of the Annual General Meeting (AGM) where the auditor is appointed. If the appointment is made after the AGM or after the beginning of the financial year, Form ADT-1 needs to be filed within 15 days of the appointment. Since the company has approached you now, you can still accept the audit engagement.

2. **Form 20B - Acceptance of Auditor**: Form 20B is required to be filed with the RoC by the auditor after the company appoints you as the auditor. This form signifies your acceptance of the appointment and must be filed within 30 days of receiving the intimation from the company. There may be additional fees if Form 20B is filed after the stipulated time frame, so it's important to file it within the prescribed period to avoid penalties.

3. **Subsequent Appointment**: If you are appointed as the auditor after the beginning of the financial year or after the AGM, you are considered a subsequent auditor. The same rules regarding acceptance and filing of forms (ADT-1 and 20B) apply as mentioned above.

4. **Professional Ethics and Independence**: Ensure that you comply with professional ethics and independence requirements as specified by the Institute of Chartered Accountants of India (ICAI) while accepting and conducting the audit.

In summary, you can accept the audit engagement from the Pvt Ltd company even though they approached you after the beginning of the year. Make sure to file Form 20B within the prescribed time frame to avoid additional fees. If appointed as a subsequent auditor, adhere to all regulatory requirements as per the Companies Act and ICAI guidelines.