Who Can & Who Cannot Be An Auditor

Who Can Be An Auditor

An auditor of the company must be chartered accountant or the holder of the certificate granted under a law in force, emitting him to act as an auditor of companies in the country.

The first auditor may be appointed by the directors before the statutory meeting, and if so appointed, shall hold office until the first annual general meeting, unless previously removed by a resolution of the company in general company.

The directors may fill casual vacancy in the office of the auditors but while any such vacancy continues the surviving or continuing auditor or auditors (if any) may act.

Every company shall at each annual general meeting appoint an auditor or auditors to hold office until the next annual general meeting. If the appointment of an auditor is not made at a general meeting, the Central Government may on the application of any member of the company, appoint an auditor of the company for the current years and fix remuneration to be paid to him by the company for his services.

Who Cannot Be An Auditor

The following persons cannot be appointed an auditor of the company:

1. A director or an officer of the company.
2. A partner of such director or officer.
3. In the case of a company other than a private company not being the subsidiary company of a public company any person in the employment of such director or officer.
4. Any person indebted to the company and if any person after being appointed becomes indebted to the company, his appointment shall be terminated.