Basavaraj (B.Com FCA) (193 Points)
19 February 2012Hi,
I have been appointed as an auditor of the private limited company. This is my first audit assignment which i am taking up.
Please guide me on procedure to be followed by me regarding appointement as an auditor.
The company is a private ltd company. and i am replacing the existing auditor.
an early response would be very helpful
Milind M. Kulkarni
(Practicing CA)
(580 Points)
Replied 21 February 2012
Hi Basavaraj:
The sequence of formalities to be followed is as follows.
1. The company should ask your eligibility U/S 224 (1B) of Companies Act, 1956 and willingness to accept appointment as auditor of that company by a letter.
2. You should confirm your eligibility and willingness by a return letter.
3. The company should inform you regarding your appointment as auditor in their AGM with a certified copy of the resolution.
4. You need to contact the retiring auditors seeking their no objection for acceptance of appointment (pls check if this needs to be done before receipt of appointment letter. In my understanding, it is after appointment from the company).
5. Receipt of no objection from retiring auditors.
6. You inform the company regarding acceptance of appointment and also intimate ROC/ MCA regarding this within 30 days of appointment (please check the latest provision in this regard as to who needs to do this now).
Hope the above is useful to you.
Giridhar S Karandikar
(Team Lead)
(7543 Points)
Replied 22 February 2012
Hi Milind,
The 1st point provided by you would not be applicable to an audit of the private company unless it is an subsidiary of a pblic co, as the statutory limit as specified u/s 224(iB) is N/A to the audit of a pvt company.
The remaining points I agree with you.
jay prakash tripathi
(Tax consultants)
(27 Points)
Replied 26 March 2012
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