Appointment of Auditors

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Appointment of Auditors

Who is an Auditor?

All the government and non-government organizations have to keep track of their accounts and audit reports as the financial year approaches. The financial statements of these firms need to be thoroughly analyzed and assessed before submitting them to the authorized departments. This assessment of financial documents is done by an Auditor.

Any individual trained to review and verify accounting data and recognized as a Chartered Accountant (CA) under the Chartered Accountant Act 1949 is deemed to be an auditor.

Qualifications of an Auditor:

A person is eligible for the appointment as an auditor only if he is a Chartered Accountant.

A firm is eligible for the appointment as an auditor only when the majority of its partners are Chartered Accountants practicing in India.

In the case where a limited liability partnership firm is appointed as auditor, only the partners who are Chartered Accountants will be authorized to act and sign on behalf of the firm.

Appointment of an Auditor is significant in a company that analyses and understands a company’s financial records to deliver effective analyses and relevant information. Management can use this information to evaluate the company and implement measures necessary to meet their objectives.

Duties of an Auditor

Provide an Audit Report

Make Proper Enquiry

Assist in Branch Audit

Compliance With Auditing Standards

Reporting of Frauds

Provide Assistance in Investigation

Adhere Principles of Auditing

Provide Negative Opinion

Documents required for Auditor’s appointment

Document Checklist

Company’s Board resolution copy

NOC from old auditors

A written consent from the Auditor to such appointment

A certificate from the Auditor that he/she/it is not disqualified to be appointed as an Auditor under section 141

Copy of the intimation sent by company to the auditor

Name of the new auditor firm

Address of the new auditor firm

Email address and PAN number

A number of years for which the firm is appointed

Details of the resigning auditor firm

Appointment date of the new auditor firm

Digitally signed Form ADT-1 (along with the signature of the director of the company)

Appointment of Auditors

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Appointment or Resignation of Auditor

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Process to Appointment of Auditors

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