What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Assistance with statutory auditor appointment and re-appointment.
- Proper documentation of auditor consent and eligibility.
- Support for auditor resignation and transition procedures.
- Assistance with shareholder and board resolutions.
- Preparation and filing of applicable MCA forms.
- Better coordination between the company and incoming or outgoing auditor.
- Reduced risk of missed statutory filing deadlines.
How the engagement works
Statutory auditor appointment and resignation are governed primarily by Sections 139 and 140 of the Companies Act, 2013, together with applicable rules and MCA filing requirements. Companies are required to follow prescribed procedures for appointment or re-appointment of auditors, obtain the required consent and eligibility confirmation, and complete applicable filings with the Registrar of Companies. Where an auditor resigns, the applicable resignation and filing requirements must also be completed within the prescribed period. The exact procedure may differ depending on whether the matter relates to first auditor appointment, subsequent appointment, casual vacancy, resignation, removal, or other circumstances.
Scenario 1: A newly incorporated company needs assistance with appointment of its statutory auditor.
Scenario 2: An existing company needs to appoint or re-appoint its statutory auditor after completion of the applicable tenure or annual general meeting process.
Scenario 3: The existing statutory auditor resigns and the company needs assistance with the resulting appointment and MCA filings.
Scenario 4: A company wants to change its statutory auditor and requires guidance on the applicable legal procedure and documentation.
Scenario 5: A company needs assistance completing ADT-1 or other auditor-related MCA compliance filings.
Auditor Eligibility Review
We assist in reviewing the proposed auditor or audit firm’s eligibility, qualifications, independence, and other applicable requirements under the Companies Act.
Consent & Eligibility Documentation
We coordinate the auditor’s written consent, eligibility certificate, declarations, and other documents required for appointment or re-appointment.
Board & Shareholder Documentation
We prepare applicable board resolutions, notices, explanatory statements, shareholder resolutions, minutes, and other corporate documentation required for the auditor appointment process.
General questions
01What is statutory auditor appointment?
Statutory auditor appointment is the formal appointment of a qualified auditor or audit firm to audit a company’s financial statements in accordance with the Companies Act, 2013 and applicable auditing requirements.
02When does a company need to appoint a statutory auditor?
Companies are required to appoint statutory auditors in accordance with the Companies Act. The procedure and timing differ depending on whether it is the first auditor, subsequent auditor, auditor for a casual vacancy, or another appointment situation.
03What is ADT-1?
ADT-1 is the prescribed MCA form used by a company to communicate the appointment of an auditor to the Registrar of Companies, subject to the applicable Companies Act rules and filing requirements.
04What documents are required for auditor appointment?
Documents may include the auditor’s consent, eligibility certificate, declarations, board and shareholder resolutions, appointment details, and other information required for the applicable MCA filing.
05Can a statutory auditor resign before completion of the term?
Yes, a statutory auditor may resign subject to the applicable Companies Act requirements and prescribed procedure. The auditor and company may have separate filing and compliance obligations following the resignation.
06What is ADT-3?
ADT-3 is the prescribed form through which a resigning auditor communicates the resignation to the Registrar of Companies, subject to the applicable provisions and filing requirements.
07What happens after the statutory auditor resigns?
The company may need to complete the applicable procedure for filling the resulting vacancy and appointing another auditor, depending on the circumstances. The required approvals, timelines, and MCA filings should be evaluated for the specific case.
08Can you handle both auditor appointment and resignation compliance?
Yes. We can assist with the documentation, resolutions, MCA forms, filings, and corporate record updates required for both auditor appointment and resignation matters.
