Appointment of Auditor

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Statutory requirement

The appointment of an auditor is a crucial process for businesses in India to ensure accurate financial reporting and compliance with statutory requirements.

The Companies Act, 2013

The Companies Act, 2013, contains the legal provisions related to the appointment of auditors, their qualifications, rotation, removal, and other aspects.


The Institute of Chartered Accountants of India (ICAI) sets the professional standards and guidelines for auditors in India, including the auditing and reporting standards to be followed.


The appointment of auditors is regulated by the Ministry of Corporate Affairs (MCA), which is responsible for administering the Companies Act and ensuring compliance with its provisions.

Benefits of Appointment of Auditor

Compliance with Legal Requirements

Appointment of an auditor ensures compliance with the Companies Act and other applicable laws and regulations.

Financial Reporting Integrity

An independent auditor's assessment helps maintain the accuracy, completeness, and reliability of financial statements.

Transparency and Accountability

The appointment of an auditor promotes transparency and accountability in financial reporting and business operations.

Investor Confidence

The presence of an independent auditor enhances investor confidence in the company's financial health and governance.

Documents Required

Form MGT 14 & ADT 1

Business proofs


Identity proofs


Process for appointment of auditor

Appoint a chartered accountant to be the company’s auditor

Obtain the certificate

File the DT 1 form



Appointment of Auditor in 3 Easy Steps

  • Spare less than 10 minutes to fill our online Questionnaire
  • Upload required Documents
  • Make quick payment through our secured gateways
  • Assigned Relationship Manager
  • Drafting of required documents for filing
  • Preparation of Forms to be filed
  • Online Filing of Financial Statement and other documents

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Have Questions? Find Answers Here

    • The appointment of an auditor should take place within 30 days of the company's incorporation or at the first Annual General Meeting (AGM), whichever is earlier.

Yes, subject to compliance with the Companies Act, an auditor can be reappointed for consecutive years through a resolution passed by the shareholders.

Yes, the auditor can be removed before the completion of their term through a special resolution passed by the shareholders. Certain legal requirements and procedures must be followed for such removal.

An auditor should be a qualified Chartered Accountant (CA) or a firm of Chartered Accountants as per the guidelines and qualifications prescribed by the Institute of Chartered Accountants of India (ICAI).

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