{"id":157,"date":"2020-01-29T03:55:54","date_gmt":"2020-01-28T22:25:54","guid":{"rendered":""},"modified":"2026-09-03T16:47:26","modified_gmt":"2026-09-03T16:47:26","slug":"how-to-appoint-an-auditor","status":"publish","type":"post","link":"https:\/\/www.legalsalaah.com\/blog\/how-to-appoint-an-auditor\/","title":{"rendered":"How to Appoint an Auditor"},"content":{"rendered":"

<\/p>\n

A person who holds a legal degree of chartered accountant who reviews and verifies all the accounting and taxable data is known as an auditor.<\/font><\/span><\/div>\n

<\/h2>\n

Why should we make an appointment for an auditor?<\/b><\/font><\/span><\/p>\n


<\/font><\/p>\n
Auditors are the ones who manage the company\u2019s accounts and taxable records and guide the interest of shareholders. He\/she is bound to check and correct the maintained accounts by the directors and guide them to there actual financial position. The company is provided with an independent opinion by the auditor to protect future losses for the company and shareholders. Therefore for the company’s growth, an appointment of an auditor is important.<\/font><\/span><\/div>\n
\u00a0<\/font><\/span><\/div>\n
*According to the government all the registered companies in India must appoint an auditor who can audit the books of accounts each year.\u00a0<\/font><\/span><\/div>\n
\u00a0<\/font><\/span><\/div>\n
Appointment<\/b><\/span><\/font><\/div>\n

<\/span><\/font><\/div>\n
Within 30 days of\u00a0<\/span>Company incorporation<\/a><\/span>\u00a0of a company, the board of directors must appoint the first auditor in their first general meeting.\u00a0<\/span><\/font><\/div>\n
The appointment can be for any time period be it 5 years at a stretch or 1 year which can be renewed anytime if necessary.<\/font><\/span><\/div>\n
If the appointment of the auditor is unsuccessful within 30 days of incorporation then the members of the company are informed and an EGM (Extraordinary general meeting) must be called to appoint one within 90 days.\u00a0<\/font><\/span><\/div>\n
That temporary auditor will be appointed until the company decides to appoint an auditor in their meeting.<\/font><\/span><\/div>\n
\u00a0<\/font><\/span><\/div>\n
Procedure for appointing an Auditor in Non-Government Companies.<\/font><\/span><\/div>\n
\u00a0<\/font><\/span><\/div>\n
1. Within 30 days of incorporation of a company the board of directors must appoint the first auditor in their first general meeting, if the appointment of the auditor is unsuccessful then the members of the company are informed and an EGM (Extraordinary general meeting) must be called to appoint one within 90 days.<\/font><\/span><\/div>\n


<\/font><\/p>\n

2. The auditor must be informed about the intention of appointing them as an auditor in the company and ask if he or she is eligible to take the job and will not disappoint the company.<\/font><\/span><\/div>\n


<\/font><\/p>\n

3. Auditor must provide the consent and the certificate.<\/font><\/span><\/div>\n


<\/font><\/p>\n

4. The board meeting is called.<\/font><\/span><\/div>\n


<\/font><\/p>\n

5. The auditor is appointed at the first board meeting if eligible.<\/font><\/span><\/div>\n


<\/font><\/p>\n

6. File ROC with form ADT-1 (should be attached with GNL- 2 form) within 15 days.<\/font><\/span><\/div>\n

<\/span><\/div>\n

<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

A person who holds a legal degree of chartered accountant who reviews and verifies all the…<\/p>\n","protected":false},"author":1,"featured_media":367,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-mca"],"yoast_head":"\nHow to Appoint an Auditor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalsalaah.com\/blog\/how-to-appoint-an-auditor\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Appoint an Auditor\" \/>\n<meta property=\"og:description\" content=\"A person who holds a legal degree of chartered accountant who reviews and 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