The Companies Act 2013 prescribes a specific procedure for auditor resignation. The Auditor is appointed in the companies 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 inform the reasons for the resignation to the ROC. After submitting resignation to the company, a procedure is to be carried out by the auditor. We have shared here the complete procedure and other related formalities.
After providing 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.
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.
The procedure for an auditor’s resignation must be followed in the below-mentioned sequential form. 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 a new auditor.
When a company appoints a new auditor, the following documents shall be filed by the company.
Besides the above forms, the 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 the Companies Act for the resignation and appointment of an auditor firm.
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