Appointment of auditor

appointment, remuneration and qualification

1. Auditor - 2 Appointment, remuneration and Qualification of auditor B.Com VI SEMISTER VSK UNIVERSITY BELLARY BY : VINAYKUMAR V.P.

2. First auditor of a company Subsequent appointments Auditor for government company Appointment by special resolution Appointment against a casual vacancy Branch auditor

3. First auditor of a company Within 30 days of registration of the company. Appointed by BOARD OF DIRECTORS If BOD fails, the members (company) may appoint in annual general meeting. Auditor hold office till next AGM. First auditor hold the office till the conclusion of first annual general meeting. First auditor may reappoint or replaced by nominating new auditors.

4. Subsequent appointments BODs Nominate auditors and put it in AGM. Approval for appointment is taken in the AGM. If fails to appoint auditor in AGM: It should be noticed to Central Government within 7 days of meeting. Central Government will appoint the auditor. Appointment letter is to be given to auditor within 7days of AGM. Auditor should give his acceptance within 30days from receipt of appointment letter by company.

5. Auditor for government company: Appointed by CENTRAL GOVERNMENT on the recommendations of COMPTROLLER AND AUDITOR GENERAL OF INDIA (CAGI) u/s 619 It  is the constitutional authority in I ndia, established under article 148 of the  constitution of India . He is empowered to  audit  all  receipts  and  expenditure  of the  government of India  and the  state governments , including those of autonomous bodies and corporations substantially financed by the government. 

6. Appointment by special resolution Appointment of auditor is required a special resolution if Subscribed capital of the company is held individually or collectively by: 1) A public financial institution or government company or central or any other state government 2) Any financial institution in which state government holds not less than 51% of the subscribed capital A nationalised bank or any insurance company carrying on general insurance business the appointment of auditor shall be made by special resolution.

7. Appointment against a casual vacancy In case of resignation by auditor Filled by only in AGM. And the auditor hold the office till the conclusion of next AGM. In case of other than resignation (Death, insolvency ect .) Filled by BOD.

8. Branch auditor Company statutory auditor himself can be branch auditor An independent auditor may appoint by passing resolution in AGM. BODs may appoint branch auditor if they are authorized by passing resolution in AGM.

9. remuneration of auditor The authority, who appoint the auditor will fix the remuneration for the auditor. First auditor : BOD Subsequent auditors : shareholders at annual general meeting or BOD, if authorized by shareholders. Auditor of government companies : central government

10. Auditor is entitled for additional remuneration if auditor is assigned additional work by the company. Additional work such as preparing final accounts, taxation work etc. should be paid with additional remuneration as per the contract. Additional remuneration of auditor

11. Qualification of auditor Auditor must be Chartered Accountant (sec 226 of companies act 1956) A partnership firm of qualified chartered accountants. Any other person holding certificate under the Restricted Auditors Certificate Rules 1956 (sec 226(2) of companies act 1956)