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Re-appointment of Statutory Auditor for mandatory 5 years?

11 January 2021

If a Statutory Auditor Firm is reappointed for Second term , is it mandatory as per Companies Act to re appoint them for 5 years in their second term?

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5 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 11 January 2021

Yes it is mandatory for appointment for 5 years but any statutory auditor may be removed from his office even before his expiry of term

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pritesh (delhi) (720 Points)
Replied 12 January 2021

Yes it's mandatory for all types of companies.

Kapadia Pravin (17259 Points)
Replied 12 January 2021

It is not mandatory to re-appoint in second term. Company can have colling off period of 5 years

Chirag (Professional) (1979 Points)
Replied 13 January 2021

For listed companies and other kind of prescribed companies , Auditor or audit firm may be appointed for One/two Term of less than 5 Years (as the case may be) for all other companies ,auditor should be appointed for 5 years (and no concept of rotation is applicable ).

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cskrishna panda (3 Points)
Replied 13 January 2021

Hi chirag, any citation in company's act or reference anywhere , where retiring auditor firm in their second term can be Re-appointed for less than five years?