Appointment and Resignation of Auditor
An Auditor is an independent professional person who is qualified to perform an audit; An Auditor is responsible for evaluating the validity and reliability of company’s financial statements.
Section 138 to 148 of the Companies Act deal with accounts, audit and auditors, as companies are required to file financial reports with the ROC for each financial year, thus these should be thoroughly checked and assessed before submission, and here the auditor performs such duty.
A person will be qualified to be appointed as an auditor of a company only if he is a qualified Chartered Accountant and where a firm is appointed as an auditor of a company; only the partners who are Chartered Accountants are authorized to act and sign on behalf of the firm.
Appointment of Auditor:
First Auditor: Every company within 30 days of registration of the company during the annual general meeting or within 90 days in EGM by the board of Directors. The first Auditor (or the Auditing firm) appointed will hold office from the conclusion of the meeting.
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