APPOINTMENT/RESIGNATION OF AUDITOR
A person will be qualified to be appointed as an auditor of a company only if he is a qualified Chartered Accountant and where a firm is appointed as an auditor of a company; only the partners who are Chartered Accountants are authorized to act and sign on behalf of the firm.
Appointment of Auditor:
First Auditor: Every company within 30 days of
registration of the company or within 90 days in EGM
by the board of Directors if company fails to do so. The
first Auditor (or the Auditing firm) appointed will hold
office from the conclusion of the meeting
In case of Government companies, the first auditor
would be appointed by the Auditor-General of India
and Comptroller within 60days from the date of
registration of the company and where it fails to
appoint the auditor within the said time period, the
board of directors would appoint such auditor within
30days.
An individual auditor who has completed his term
shall not be eligible for re-appointment as auditor in
the same company for five years from the completion
of his term.
An audit firm which has completed its term , shall not
be eligible for re-appointment as auditor in the
same company for five years from the completion of
such term:
Provided further that as on the date of appointment no
audit firm having a common partner or partners to the
other audit firm, whose tenure has expired in
a company immediately preceding the financial year,
shall be appointed as auditor of the same company for
a period of five years