6 Dec 2017, 09:30 — 4 min read
The Companies Act 2013 prescribes a specific procedure for auditor resignation. The auditor is appointed in a company under section 139 of the Companies Act, 2013. If an auditor wants to resign from his post, he must intimate the registrar of the companies or ROC in the prescribed form and manner. The intimation shall be given within 30 days from the date of resignation with a statement. You will learn more about filing this statement (Form ADT-3) in this post.
This article discusses the formalities required for auditor resignation. An auditor must also explain to the ROC the reasons for his resignation. After submitting resignation to the company, a procedure is to be carried out by the auditor. I have shared here the complete procedure and other related formalities.
Auditor Resignation and Procedure of Filing Form ADT 3
After providing a notice for resignation to the company, an auditor shall file a statement in the form of ADT-3 form. This statement shall be sent to the RoC within 30 days from the date of the resignation.
The ADT 3 Form statement shall contain the following details.
If the resigning auditor fails to intimate ROC regarding resignation within the prescribed 30 days time, he is charged a penalty ranging from Rs. 50,000 to 5 lakhs.
Step-Wise Procedure for Auditor’s Resignation
The procedure for an auditor’s resignation must be followed in the below mentioned sequential form. A careful execution of the below-mentioned steps will avoid any error in the process:
After the resignation of an auditor, a company has to carry out prescribed formalities/Procedures for appointing new auditor.
Documents Required for Appointment of New Auditor
When a company appoints a new auditor, following documents shall be filed by the company.
Besides the above forms, following information shall be given to the ROC.
The ADT-1 form shall be filed within 30 days from the date of the appointment of the new auditing firm. Every company has to follow the prescribed rules as per Companies Act for resignation and appointment of an auditor firm.
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Posted byRavi Haresh Kariya
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