Appointment of Auditors


Appointment of Auditors

Why appointment of auditor is required?


Appointment of Auditor is a statutory requirement.


As per section 139(6) of Companies Act 2013, ‘company (other than Government Company) has to appoint its first auditor within 30 days from the date of incorporation in a board meeting. If the board of directors are not able to appoint, then he has to be appointed within 90 days at an extraordinary general meeting of members.

In simpler terms, an auditor has to be a chartered accountant holding a certificate of practice and is required to be appointed within 30 days of incorporation of company. The ADT-1 form needs to be filed on the Ministry of Corporate Affairs website for the appointment of auditor. So, you need to choose a chartered accountant and get your form filed for completing this compliance.
What if appointment of auditor is not made?

As appointment of Auditor is statutory requirement, non-compliance of same can attract severe penalty on company and director as well as.
But, in case same appointment is not completed within 30 days, appointment can be done at later stage with statutory late fees as prescribed by ROC.

To know about late fees , please use following link:
What is the role of Auditor in company?


The auditor appointment by the Board plays a vital role in the company. Some of major are as follow:

1. Helps you in finalization of Books of accounts i.e. finalization Balance sheet and profit & loss.
2. Perform audit of your books and accounts annually to check whether any non-compliance with companies act existence in your books.
3. Also Check the non-compliance of any law applicability, if exists.
4. Provide an audited Balance sheet and Profit & Loss which is required to be filed at ROC.
5. Issue an audit report after performing a complete which is required to be filed at ROC.
Documents required for appointment of Auditor’s Appointment?

Certain documents are required to prepare for Auditor’s Appointment such as follow:
1. Board Resolution for the appointment of Auditor.
2. Consent letter by Auditor for his appointment.
3. Appointment letter by company.
The above documents are required to file at MCA in form ADT-1 for appointment of Auditor.

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