First Auditor:- The First Auditor of the company shall be appointed by the board within 30 days of the incorporation. Otherwise, an EGM will be convened and this will be done following 90 days of incorporation. The so engaged auditor shall be the auditor of the company until the termination of the First Annual General Meeting of the Company.
Auditor: - In its 1st annual general meeting, any given company shall appoint an individual or firm as an auditor of that company which shall serve in that capacity until the end of his meeting and until his successor is appointed.
Form ADT-1 is required to be file for Appointment of Auditor.
The appointment is done by the members for a maximum term of 5/10 consecutive years.
Only a Practising Chartered Accountant can be appointed as Statutory Auditors of the Company.
As per section 141(3)(d)(i), a person shall not be eligible for appointment as an auditor of a company, who, or his relative or partner is holding any security of or interest in the company or its subsidiary, or of its holding or associate company or a subsidiary of such holding company.
Filing of Form ADT-1 is optional in case of Appointment of first Auditor of the Company.