Do shareholders elect auditors?

Who appoints auditor for a company?

Appointed by the Board Of Directors. This has to be done within 30 days from the date of Registration. Appointment can also be done by Members at Extraordinary General Meeting within 90 days of information.

How are auditors appointed?

The 1st Auditor shall be appointed by the Board of Directors by passing B/R within a period of 30 Days from the date of Incorporation/Registration of the company. In case of Failure to appoint the Auditor, the Board of directors shall intimate about the same to shareholders of the company.

Does a company have to appoint an auditor?

By law, a corporation is required to appoint an auditor of the corporation, however, non-distributing corporations (generally smaller private corporations), are entitled to waive the requirement to appoint an auditor, and can waive the requirement for the corporation to provide audited financial statements in each year …

Are auditors shareholders?

Under Section 235 of the Companies Act 1985 auditors are appointed by and report to the shareholders of the company. The auditors provide an independent report to the shareholders on the truth and fairness of the financial statements that are prepared by the board of directors.

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Who Cannot be appointed as auditor of a company?

IF a chartered accountant is indebted to a company, the firm( in which he is a partner) cannot be appointed as auditor. Similarly, if the firm is indebted to the company, the partner of the firm cannot be appointed as an auditor of the company.

Who can act as an auditor?

A statutory auditor of a company is a person appointed to verify the correctness of the accounting records of the company. As per the Companies Act, 2013, only a practising Chartered Accountant (CA) is eligible to be appointed as the statutory auditor in a company.

Who can appoint first auditor?

By Board of Directors of the Company–

According to Section 139(6) the first auditor should be appointed by the board of directors within 30 days from the registration of the company. Company holds the board meeting and appoint the same.

How are auditors appointed and removed?

For Government Companies, the first auditor is appointed by Comptroller and Audit-General of India within 60 days from the date of the Company’s registration. If the Audit- General fails to do so then the Company’s Board of Directors shall appoint the auditor within the next 30 days.

Can a director be appointed as auditor?

Sec 226 contains qualifications & disqulaifications of an auditor. Relative of a director is not disqualified from being appointed as auditor of company. Hence he can be appointed as auditor provided either his or the director’s independence should not be effected due to this appointment.

Are auditors required to attend AGM?

Under the provisions of section 146 of the Companies Act, 2013 – an auditor has the right to attend any general meeting of the company he has been appointed as the auditor.

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What is an audit waiver?

The members of certain companies may pass a waiver resolution exempting the company from the requirement to have its accounts audited for the financial year.

Who is a company auditor in auditing?

Definition: Company Auditor is an individual appointed for preparing an independent audit report of the company. They can be either appointed by the company’s Board of Directors, Shareholders, Central Government or Comptroller and Auditor General of India (C&AG) accordingly.

Who are auditors of a company?

An auditor is a person or a firm appointed by a company to execute an audit. To act as an auditor, a person should be certified by the regulatory authority of accounting and auditing or possess certain specified qualifications.

What is the relationship between shareholder and independent auditor?

Since auditors act on behalf of shareholders they become agents while shareholders are the principal. The auditors may prejudice the interest of the shareholders thus causing agency problems in the following ways: Colluding with the management in performance of their duties whereby their independence is compromised.