Auditor Appointment

Auditor Appointment in a Company registered in India 

In India, the appointment of an auditor for a company is governed by the Companies Act, 2013. According to the act, every company is required to appoint an auditor for a financial year. The appointment is made by the shareholders at the annual general meeting (AGM).

The first auditor of a company is appointed by the Board of Directors, and subsequent auditors are appointed by the shareholders. The term of an auditor is for a period of one year and they can be reappointed for successive terms.

The act also lays down the eligibility criteria for an appointment as an auditor. An individual or a firm can be appointed as an auditor, provided they possess the required qualifications and experience. The act also lays down the conditions under which an auditor can be removed from their position.

It is important to note that the Companies Act, 2013 also provides for the appointment of statutory auditors for certain companies based on their turnover, paid-up share capital, etc. These auditors are appointed by the Central Government.

Note: In a newly incorporated firm the auditor should be appointed within 30 days of the date of incorporation. 

In summary, the appointment of an auditor in a company in India is done at the AGM, by the shareholders, and is governed by the Companies Act, 2013. The act lays down the eligibility criteria, and conditions for the appointment and removal of auditors.