What are the Provision relating to Audits in Companies Act 2013? - Professionals - Legal - TIK Share
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What are the Provision relating to Audits in Companies Act 2013?


Rahul Rai

2014-02-04

What are the latest provision in Companies Act, 2013 regarding appointment of Auditors?

Is their any change in Duties and rights of Auditors?

Vedanta Deshika

2014-02-04

HI Rahul ,

Auditors rights and duties remain more the same as per the new comnpanies act, however few more disqualifications have been incorporated

With regard to Duration and term of auditor holding office, there has been paradigm shift in the provisions.

For unlisted companies, maximum term is prescribed as below -

Auditor appopinted at first AGM shall hold office till the conclusion of 6th AGM (subject to ratification by members at every AGM)

Auditor appointed at subsequent AGM shall hold office till conclusion of 6th AGM

In case of listed companies, maximum term is  -

Individual - 1 term of 5 consecutive years

Partnership firm -2 terms of consecutive years

  Coolinf off period before next appointment is 5 years

 

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