Audit service providers in India

Posted by Ca On Web on March 22nd, 2018

Indian companies are governed by Companies Act 2013 and every company has to comply with various statutory provisions as per different sections of Companies Act 2013. Audit compliance in India is also governed by company law in India. In simple language what do you mean by audit? An audit is a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain how far the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by law. Stakeholders are secure with the fact that the books of accounts are being audited by independent auditor of the company. Audit compliance in India or any other country is made mandatory and noncompliance attracts interest and penalty.

 Regarding the appointment of Statutory Auditor in Indian company, The Board of directors is required to appoint the first auditor within 30 days of registration of company and in case of failure to do so, first auditors has to be appointed by members within 90 days at the EGM, however, such auditors have to vacate the position on conclusion of first AGM. Every auditor (except first auditor) including LLP, shall be automatically appointed for a tenure of five years with/ without re-appointment in the subsequent AGMs. Auditor’s consent and certificate has to be obtained by company explaining that such appointment is in compliance with the provisions of the Act and satisfies the criteria provided in section 141. Intimation of appointment has to be filed by the company with the Registrar within fifteen days of appointment by filing form ADT1.