Appointment of Auditors is done after incorporation of a company in the first annual general meeting, an Auditor must be appointed by the Board of Directors. Tenure of the Auditor will be till the conclusion of 6th AGM or 5 years.
Every company need to appoint auditor to protect the interests of the shareholders. The auditor examine the account maintained by the directors and inform them of the true and fair financial position of the company.
Who Can be Auditor?
A person shall not be qualified for appointment as auditor of company unless his is a practising Chartered Accountant a Chartered Accountant firm.
What are the qualities of a good auditor?
The 5 Characteristics of an Auditor Have the Required Experience. Certifications are key academic qualifications for an auditor. Ability to Make Independent Decisions. An auditor's decision should not be wavered or influenced by anyone. Auditors Have the Ability to Understand Different Business Needs. Dependable. Effective Communication Skills.
Company conducts AGM
Auditor is Appointed in AGM
Send letter of Appointment to Auditor
Filing of form with MCA