Resignation of Auditor

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Formal procedure

The resignation of an auditor involves the formal procedure by which an auditor ceases to be associated with a company and terminates their responsibilities related to auditing the company's financial statements.


According to the Section 142(2) Act, the auditor must file a resignation to the Registrar within thirty days.

Adhere to rules

If the auditor does not comply with the rules, he/she would be imposed a fine of Rs 50000.

Application file

The auditor should provide valid reasons for the resignation in the application file.

Benefits of Resignation of Auditor

Flexibility and Independence

The resignation option allows auditors to exercise their professional judgment and maintain their independence in deciding to discontinue their engagement.

Smooth Transition

Resignation procedures ensure a seamless transition to a new auditor, minimizing disruptions in the auditing process and financial reporting.

Enhanced Credibility

A transparent and well-documented resignation process enhances the credibility and trustworthiness of the audit profession and the company.

Documents Required

Form MGT 14 & ADT 1

Business proofs


Identity proofs


Steps involved in Resignation of auditor

Appoint a chartered accountant to be the company’s auditor

Obtain the certificate

File the DT 1 form



Registration 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

Yes, an auditor can resign at any time during the financial year by providing a notice in writing to the company.

The resigning auditor is required to provide the company with a resignation letter and file necessary forms with the Registrar of Companies (RoC) within 30 days.

The company must promptly appoint a new auditor to fill the vacancy caused by the resignation. The new auditor should be appointed within 30 days.

The auditor can provide reasons for their resignation if they deem it necessary, but it is not mandatory under the Companies Act.

If the auditor resigns due to dissatisfaction with the company's management or non-compliance, they may be required to report such concerns to the Audit Committee or the RoC, as per the circumstances.

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