The members of the Company appoints a Chartered Accountant to get the statutory audit of books of accounts every year. The company sends an appointment letter to the auditor for acceptance of the appointment. The statutory auditor should provide the consent letter for accepting or rejecting the appointment as a statutory auditor of the Company for the specified period.
An auditor has to provide their consent to the appointment letter received from the Company. Consent Letter needs to fulfil the certain requirements of the provision of Companies Act, 2013. Here is the sample consent letter.
A Private Limited Company should file Form ADT- 1 on MCA. Form ADT-1 is the form for appointment of auditor to intimate the ROC i.e. Registrar of Companies. As per Sec 139 (1) of the new Companies Act, 2013 it is mandatory for the Company to file Form ADT-1 once it appoints the auditor.
After incorporation of a company, the Board of Directors must appoint the first auditor in the first Annual General Meeting. The statutory auditor will typically hold the term till the conclusion of the 6th AGM. The appointment of Statutory Auditor can also be made for a period of 1 year and should be renewed at each annual general meeting.
Before the appointment of the Auditor, a written consent along with Certificate must be obtained from the CA, that he/she is eligible for appointment as Auditor of a company and that the proposed appointment is in accordance with the Companies Act
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.