Eligibility Criteria for filing Audit of the Business in India
There are no eligibility criteria for getting our Auditing services for your Business. However, to audit your Business in an informed manner, we require you to:
- Be upfront about your transactions
- Provide us access as per requirement
- Ensure that your compliances are met
How does a Business appoint an Auditor?
The Auditor's appointment in a company is mandatory for the Annual General Meeting. He must be appointed every following year. The auditors appointed at the AGM must hold the office from the conclusion of the current Annual Meeting at which his appointment took place till the conclusion of the next Annual Meeting of the Company's Board.
From this, you can access that the appointment of an auditor is not in the hands of the Company's directors. Such powers are always vested in the general body of shareholders. But, the auditors for business inspection must be appointed by the Board of Directors for the first time. His appointment must occur within one month from the date of the Business's incorporation with the MCA.
The appointed Auditor must hold the office until the conclusion of the first AGM of the registered Business. In any case, if the BoD fails to appoint its first Auditor, then the Company must appoint him or her at the general meeting.
Who can a Company or LLP appoint as their Auditor?
As per the Companies Act of 1956, any individual who is a Chartered Accountant within the means of the Chartered Accountants Act of 1949 can be a designated auditor for a Business. In addition, the appointed Auditor must first hold a certificate of practice. For a Partnership Firm, if all its member partners are Chartered Accountants holding a valid practicing certificate, then any member partner can be appointed as an Auditor of that Firm or LLP. In the case of a Partnership, the appointment as an auditor can be made in the firm's name. Also, any of its member partners can act in the firm's name.
The following entities can act as an Auditor of a registered Business:
Company Personnel or Appointed Officer
- A partner of personnel of the applicant Company
- An Employee of personnel of the applicant Company
- Individuals indebted to the Company for a sum of more than one thousand rupees
- Individuals who have guaranteed to the Company on behalf of someone a sum of more than one thousand rupees
- Individuals holding any security of the Company, after one year from the date of commencement of CAA of 2000 (Companies Amendment Act)
Auditors, if he becomes subject to disqualification after the appointment, then he will have to vacate the seat.
Audit of a Branch Office
As per the Companies Act of 1956, the Auditor must audit its financial records if a public or private company has a branch office. The appointment can accomplish the given task of financial accounts of the branch office by any of the following:
- Company's Auditor
- Someone qualified to be the Company's Auditor
For branches positioned outside India, a person duly qualified to act as the Auditor must be in accordance with the laws of that country to become the Auditor of that branch. In case the Auditor chooses not to audit the branch, then he can visit the branch office if he considers it due necessary for the inspection procedure. It is one of his duties as an Auditor. He can access at all times the books, accounts and vouchers of the hiring Company maintained at the concerned branch office.