WHAT IS THE REQUIREMENT FOR APPOINTING AN AUDITOR?

WHAT IS THE REQUIREMENT FOR APPOINTING AN AUDITOR?

The decision and authority to appoint the first auditor of the company is vested in the Board. It is the responsibility of the board to appoint the first auditor within one month from the date of the registration of the company. Here, the registration date refers to the date give at the bottom of the certificate of incorporation issued by the registrar. The first auditor appointed by the board shall hold office until the conclusion of the first annual general meeting of the company.

It is mandatory for every company to appoint an individual or firm as an auditor at first annual general meeting (AGM). The auditor will have to hold office from the conclusion of that meeting till the conclusion of the sixth (6th) Annual General Meeting (AGM). The duration of auditor of company will be term of consecutive Five (5) years each for Individual and Two terms of Consecutive Five (5) years in case of Auditor Firm.


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