Originally posted by : Batul
	Adarsh, As Ankur Sir said ur spirit is really great and nothing to be sorry about we all are here to learn and gain knowledge and we are learners sp its quite obvious to make mistakes.

Yes Batul...!!!

Thanks for ur Support...

Thanks...

WHEN APPOINTEMENT OF AN AUDITOR IS BEING REFUSED BY THE AUDITOR IT WILL  MEAN NO APPOINTMENT MADE.

AND APPOINTMENT REFUSED BY THE AUDITOR WILL BE MADE BY THE COMPANY IN GM OF SHAREHOLDERS.

But please Sir according to Study Material of Integrated Professional Competence Course, Paper:6 “Auditing and Assurance” Volume 1, edition July 2010, under heading “7.2.8 Auditor Appointed at an Annual General Meeting Failing to Accept the Appointment” page no. 7.9 and 7.10 it is written that:

“The Counsel was of the opinion that the Board of Directors could appoint an auditor only under the circumstances contemplated under sub-section 5 and under sub-section 6(a) of section 224. Further that, in the specific case referred to him for opinion, the refusal of Y to accept the appointment as joint auditor did not create a vacancy either casual or by resignation since Y's appointment had not become effective. Further, the appointment of an auditor having been made by the shareholders, sub-section (3) could not be invoked. Thus, Z could only be appointed by shareholders at general meeting.”

It means there is no need of appointment of auditor by Central Govt.. Please clarify the matter as early as possible.

*File of above pages attached for your ready reference.

edition: July 2010

Study Material

INTEGRATED PROFESSIONAL COMPETENCE COURSE

Paper:6

Auditing and Assurance

Vol.1

The Institute of Chartered Accountants of India

(Set up by an Act of Parliament) New Delhi

The Company Audit - I

auditor in a company somewhat difficult. Before acceptance of the appointment given by any company, an auditor should specifically satisfy himself that the company is not covered by either section 224A or section 619B which require compliance with special procedure; otherwise he may find the appointment to be a nullity.

7.2.8 Auditor Appointed at an Annual General Meeting Failing to Accept the Appointment

Can the Board of directors be authorised by the general meeting to appoint auditors in the event of auditors appointed at an annual general meeting fail to accept the appointment? For knowing the correct legal procedure that should be followed in such a case, the Research Committee of the Institute had posed the following query to its Council:

(1)      A company appointed auditors for the current year by a resolution passed in the Annual
General Meeting as under:

"Resolved that Shri X (Chartered Accountants) be and is hereby re-appointed as a joint
auditor for the current year on an overall remuneration of Rs........ only"

"Resolved further that Shri Y (Chartered Accountants) be and is hereby re-appointed as

a joint auditor for the current year on an overall remuneration of Rs................... only."

Further resolved that in the event of both or either of the auditors declining the assignment, the Board may fill up the vacancy at their own discretion".

(2)      The Board of directors, subsequently, passed a resolution as under :

"Resolved that in the event of any of the auditors declining to accept the assignment, Shri Z should be appointed as joint auditor".

(3)                         The last para of the resolution of the general meeting and the resolution itself of the Board of Directors, were intended to meet a contingency of the appointments being declined by any or both of the auditors appointed by the general meeting since the remuneration fixed by the general meeting was less than that proposed by the retiring auditors, and there was a possibility of the appointments being rejected by the auditors on that account.

(4)                         Y declined to accept the assignment and Z was called upon to intimate his willingness or otherwise to accept the assignment pursuant to the resolution of the Board of Directors. The Counsel's opinion was sought on the following points :

(a)            whether the vacancy caused by Y declining to accept the appointment constituted a casual vacancy under sub-section 6(a) of section 224 or one due to resignation of an auditor; and

(b)                          was the appointment of Z, made by the Board of Directors in place of Y, valid?

7.9

Auditing and Assurance

The Counsel was of the opinion that the Board of Directors could appoint an auditor only under the circumstances contemplated under sub-section 5 and under sub-section 6(a) of section 224. Further that, in the specific case referred to him for opinion, the refusal of Y to accept the appointment as joint auditor did not create a vacancy either casual or by resignation since Y's appointment had not become effective. Further, the appointment of an auditor having been made by the shareholders, sub-section (3) could not be invoked. Thus, Z could only be appointed by shareholders at general meeting.

Sir, I want to know on the above case that if only Y auditor is reappointed. Means only one  existing Auditor Y is reappointed  and he refused to accept the appointment. Whether section 224(3) will be invoked or the appointment of New auditor suppose Z may be made at the genral meeting of share holders.

one Private limited company Appoints last year statutory auditor as a auditor for current year in the AGM.  they have not inform to auditor regarding appointement because same auditor apponted for the current year. In the month of November auditor saying they have not accepted their appointment for the current year. In the month of Dec' 10 company apponints another firm as a statutory auditor.

is previous auditor required to file form 23B for for the current year for rejecting their appontment.