Auditguru Auditguru Frequently Asked Questions(FAQ) Auditguru Auditguru
 Meet Us Here
Ajay asked 1 year ago

Key point -4 (Bengaluru) 1.) A firm has completed 1 term of 5 AGM, and then takes a break, is the firm required to inform the BOD so they can appoint new auditor ?   2.) A firm has completed 1 term of 5 AGM, and then takes a break, inform the BOD about the same, as the break is not know new auditor (firm) is appointed, the new appointed firm leaves the audit after 2 AGM\’s, so is it like the previous firm which leaved the audit will only get reappointed as it has to complete it\’s 2nd term or any other CA or firm can be appointed ?   3.) Do firm\’s are required to say about for how many years they will take break ? Please ans. separately for 3 of them   

1 Answers
RaviRavi Staff answered 1 year ago

For 1st point

Company will ask consent of auditor before appointing them for next term, that time auditor will specify his unavailability for next year.

For 2nd point

If there is break, whole term of 5 years will be assumed as over for that auditor. New appointment will be done for 5 AGMs, it has nothing to do with previous auditor tenure.

For 3rd Point

All appointments are mandatorily for 5 AGMs, auditor will have to resign and inform reasons to company & ROC. No discussion is done regarding breaks, its right of auditor which he can exercise anytime

Call Back Request