Resignation of an auditor
Who is an auditor?

• Pursuant to the Companies Act, 2013, it is obligatory for a company to appoint an auditor.
• A company's auditor is a practising Chartered Accountant, appointed for preparing and maintaining the company's audit reports.
• For the Government Company or Institution, it is obligatory for its auditor to file the report to the Comptroller and Auditor General of India in compliance with all due procedures.
• Each such report is an extremely important document for the company.
• The appointment of the auditor must be done during the first annual general meeting of the company.

Resignation of an auditor

• Section 140(2) of the Companies Act 2013 states the provisions for the formal resignation of the company's auditor.
• It states for any formal resignation by the company's auditor, it is obligatory to file a statement of resignation in compliance with all the rules to the registrar.
• In case of failure to do so, it is obligatory to pay a fine of ? 50,000 or a sum equivalent to his pay, whichever amount is lesser.
• In case of persistent non-compliance, the auditor is bound to pay an additional penalty of  ?500 per day of continuing failure with the maximum amount not exceeding ?500000.

Resignation Application

• There are clear procedures and rules specified for the filing of a statement of resignation or the resignation application by the company's auditor.
• In accordance with the rules stipulated, it is obligatory for the company's auditor to duly file the application Form ADT-3, post resigning to the registrar. 
• It is mandatory to file Form ADT-3 on the Website of the Ministry of Corporate Affairs or physically file to the Registrar's office.
• Also, the company is bound to organise the board meeting and appoint a new auditor, in compliance with the stipulations of the Companies Act-2013.
   
• Until the completion of the next general meeting to appoint a new auditor, the company also has the liberty to appoint a casual auditor. 
• In the event of a government firm or an institution, the onus lies on the Comptroller and Auditor General of India to appoint an auditor.

Get the best auditor for your company/business

• Want to get the best auditing service for your company? Then you are in the right spot.
• We, at Careful Counting, assist in delivering top-notch audit service. We are widely acclaimed for doing our job with utmost competency.
• With a profound experience of more than several decades, we work closely with our distinguished customers to guarantee that the impeccable standards of the audit are maintained.
• Every tiny aspect of the audit report is prepared with utmost vigilance, but not missing even a single aspect.
• The wide range of audit services we provide is Statutory Audit, Internal Audit, Tax Audit, Fixed Assets Audit, Stock Audit, Revenue Audit and much more.
• Just provide us with some basic details and documents, and our expert team will get started right away.