The obligation to appoint a statutory auditor applies to large companies incorporated under the Belgian law and to small companies when it is part of a group which is legally required to prepare and publish consolidated financial statements. Till this is done, a retiring auditor cannot be said to have been re-appointed as contemplated by the section. The reference to appointment as a statutory auditor for the statutory audit of a public interest entity in paragraph 1 means any appointment of the auditor by public interest entities and includes any deemed reappointment of the statutory auditor under section 487 of the Companies Act 2006 . Appointment of a Statutory Auditor. If that is the case, then the appointment will also have to be approved by the company at a general meeting held within three months of the board recommendation. Appointment of Auditor in First Annual General Meeting, ii. The Members shall appoint the auditor in the AGM by passing of Ordinary resolution. Where a special resolution is required (discussed elsewhere in this chapter) for appointment of auditors, and the company fails to pass such resolution at the time of appointment. The National Financial Reporting Authority (NFRA) has said that appointment of Deloitte Haskins and Sells LLP as the statutory auditor of IL&FS Financial Services Ltd … The audit exemptions applies for companies that falls under the “Small Company” or “Small Group” category. Appointment of First Auditor of the company is done either in the first board meeting that has to take place within 30 days of incorporation, or if the appointment could not take place in the board meeting, then a general meeting needs to be held within 90 days of incorporation to hold office till the conclusion of the first AGM. An audit is an … The board of director may recommend any person other than retiring auditor for appointment as statutory auditor of the Company at the time of completion of term of existing auditor … Appendix: Defined terms. Download . Appointment of Auditor: Statutory audit is needed to determine whether a Company is providing a true and fair view of its financial condition by providing bank balance, financial transactions, etc. The remuneration will be in addition to the out of pocket expensed incurred by the auditor in connection with the audit of the Company and any remuneration paid to him for any other service rendered by him at the request of the Company. In case of a Company that is required to constitute an Audit Committee u/s 177, the committee shall recommend the auditor to Board of Directors. Balance Sheet of the Branch is around £4.5 bn as of date. Resolution involved: Appointment of First auditor by passing of Board Resolution whether in the Meeting of Board of Directors or by Circular Resolution. As per section 139 (7), The appointment of auditor in Government Company or 4 Audit and Auditors government controlled (directly/indirectly) Company shall be held in accordance with the following provisions: The First auditor shall be appointed by the Comptroller and Auditor General within 60 days from the date of incorporation. Before the appointment of auditor is made, the written consent of the auditor to such appointment, and a certificate from him that if the appointment, if made, it shall be in accordance with the conditions as may be prescribed, shall be obtained from the auditor. His hard work and dedication is commendable and with him handling the legal as well as taxation things are always in order and compliant. Remuneration: Section 142 of the Act prescribed that Board may fix remuneration of the first auditor appointed by it. Need of Auditor: All the companies registered under the Companies Act, 2013 or any previous Company law, whether public or private and whether having a share capital or not, are required to maintain proper books of accounts under the provisions of section 128 of the Companies Act, 2013. Filing of Casual Vacancy by Board of Director: Section 139(8) of the Companies Act, 2013 prescribed that the Board of Director fill casual vacancy in the office of an auditor due to reason other than resignation within 30 days of such resignation. Where the auditor, appointed at the AGM has not accepted the appointment. Whatever the reasons be, the auditors should mention the same in their resignation letter. Yes, the auditor can be removed prior to the expiry of his term only via a special resolution of the company. Hence, it is a mandatory requirement for every private Company. Pursuant to Section 139 of the Companies Act, 2013, approval of the members is required for appointment of the Statutory Auditors and fixing their remuneration by means of an ordinary resolution. He is extremely ethical and is completely customer focused. Appointment of a Statutory Auditor. Seamless service and support provided by team is really helpful specially when you are trying to setup your venture. APPOINTMENT OF STATUTORY AUDITORS 2019-20 Invitation of Quotations Bank of Baroda, UAE Operations, Zonal Office, Sh Rashid Build., 2nd Floor, Ali Bin Abi Talib Street, P.O. At each Annual General Body meeting of the company, the shareholders shall appoint an auditor for the company. M/s R Gopal & Associates, Kolkata 4. A. The shareholders appoint the auditor. 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