All the companies registered like a private limited company or one person company or limited company are required to maintain a proper book of accounts and get the book of accounts audited. Therefore, after the incorporation of a company, an auditor must be appointed by the Board of Directors of the Company. First auditors of the company must be appointed within 30 days of the date of registration of the company by the Directors if not the shareholders can appoint the first auditors within 90 days of incorporation.
The following information is required in the process of appointing the auditor:
There are different types of auditors in a company, these auditors are:
The auditor in this position will serve until the end of the
first Annual General Meeting. The company must submit
Form ADT-1 to the Registrar of Companies, together with
the requisite payments.
If it is a Public Listed Company, then, in that case, the first
auditor will be appointed by the auditor general of India
and comptroller within 60 days of the Company’s
incorporation date, and if the Comptroller General of India
does not appoint such auditor within the said period of
time, the Company’s Board of Directors shall appoint
such auditor within the next thirty days, and if the Board
fails to appoint such auditor within the next thirty days, the
Company shall be dissolved. The First Auditor will hold
the position until the First Annual General Meeting
concludes.
The members of the company must appoint auditors (other than the first auditors) in a general meeting. The auditor appointed at the general meeting takes office immediately after the meeting, and the existing meeting will be considered as the first auditor meeting for the newly appointed auditor. However, if a casual vacancy in the office of an auditor arises as a result of registration, the consent of members must be acquired within three months of the Board’s recommendation date. The auditor appointed in the meeting will continue his or her work till the next Annual General Meeting. It is required for the Company to file ADT-1 within 15 days of appointing the subsequent auditor.