Appointment of Auditor
As per Companies Act, 2013 a comapny is mandatorily required to appoint an auditor.
Auditors are appointed as per provisions of Companies Act, 2013 for full disclosure of books of accounts and Board of directors is under an obligation to present the audited books of accounts to the shareholders in the AGM. The auditor is obligated by law to examine the accounts maintained by the directors and inform them of the true financial position of the company.
Appointment of an Auditor for Different Kinds of Companies-
| Particulars | Private/Unlised Company | Listed/Specified Company |
Public Sector/Govt Company |
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| Appointment of 1st Auditor post Incorporation |
Appointed by the board of directors within 30 days from the date of incorporation. Appointment can also be done by members at EGM within 90 days of information. |
Appointed by the board of directors within 30 days from the date of incorporation. Appointment can also be done by members at EGm within 90 days of information. |
Appointed by the CAG within 60 days from the date of incorporation. Appointment can also be done by the BOD within 30 days of incorporation. |
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| Appointment of Subsequent Auditor | The appointment is done by the members and he will hold office till the conclusion of the 6th meeting. | The appointment is done by the members for a Maximum term of 5/10 consecutive years. | The appointment is done by the CAG within 180 days from the 1st of April. | ||
| Casual Vacancy due to resignation and other reasons | The appointment is by the members within 3 months of the recommendations of Board and he will hold office till the next AGM. | The appointment is by the members within 3 months of the recommendations of Board and he will hold office till the next AGM. | The appointment is done by the CAG within 30 days. | ||
Different types of audit under companies act,2013
| Types of Audit | Statutory Audit | Secretarial Audit | Cost Audit | Internal Audit | ||
| Conducted by | Practicing chartered Accountant | Practicing Company Secretary | Practicing Cost Accountant | By the employees of the company /practicing professional | ||
| Audit of | Financial statements of the company | Legal compliances | Cost Records | Internal Control | ||
| Mandatory/optional | Mandatory for all types of companies | Mandatory only for certain companies | Mandatory only for certain companies | Mandatory only for certain companies | ||
| How the Auditor will be appointed | In case of First Auditor-by Passing S/R Subsequent Auditor-by passing-B/R | Always by passing B/R irrespective of appointment of First Auditor or Subsequent Auditor. | Always by passing B/R irrespective of appointment of First Auditor or Subsequent Auditor. | ways by passing B/R irrespective of appointment of First Auditor or Subsequent Auditor. | ||
Feel free to contact us for the appointment of expert auditor for your company.
