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Removal of Auditor through ADT2

24 April 2024

My auditor has been overcharging me for his service, now his tenure is ending on 30th sept, so I've been planning to replace him, as he seems to be not interested with my business. Now when I told him abt getting him replaced, initially he was ok, but now he is not giving me ADT-3 nor the soft copy of tally, DSC which he has been maintaining. He is avoiding my calls not replying to my mail.

Somebody suggested me to file ADT-2, but his tenure is ending pretty soon, Can just wait till his tenure ends or should I file ADT 2

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4 Replies

Nikhil Kaushik (Fellow CA) (85276 Points)
Replied 24 April 2024

if his term is coming to and end as on 30th September, then just follow the procedure for changing auditor in the AGM. ADT-3 applies with the auditor is resigning on his own. You need to appoint a new auditor in AGM and appoint a different auditor.

If you really do not want to wait till that long, then go for ADT-2 and If he does not handover the required information/DSC etc, file a complaint with ICAI for the same.

akhil kumar (10 Points)
Replied 25 April 2024

Alright thanx. I thought I had to get his ADT-3 even after his term expires

Nikhil Kaushik (Fellow CA) (85276 Points)
Replied 25 April 2024

remember that you need his cooperation including for the handover to the new CA. So, unless situation is really bad, do not escalate the fight. Simply tell him that you cannot afford him and will like to change the auditor at the AGM> if he really do not cooperate then take the adversarial measures.