A company should get a statutory audit of books of accounts by a Chartered Accountant every year as per Companies Act 2013. The Board of Directors appoints the statutory auditor in the Board Meeting. The Company has to send the Letter of Appointment to the Statutory Auditor. Hence, it is mandatory for the Company to record the appointment of the auditor in the Board Meeting minutes and also pass a resolution.
Sample: Appointment Letter to Statutory Auditor
Company sends letter to a statutory auditor for an appointment for a financial year and to hold office for specific period of time. The Company can appoint a statutory auditor for a maximum period of 5 years.
The directors of the company usually appoint the first auditor of a company. The shareholders may appoint the first auditor. The company appoints the auditor each year at the Annual General Meeting who holds office for the coming years.
Every company has to appoint an individual or a firm as an auditor at the first annual general meeting. The company can appoint an auditor for each financial year or for 5 consecutive financial years.
A Private Limited Company has to file Form ADT- 1 on the MCA portal. Filing Form ADT-1 will intimate the ROC i.e Registrar of Companies about the new appointment of an auditor.