Can an auditor be removed before their 5-year term ends?

Yes, but only with prior Central Government approval via Form ADT-2, before passing the removal resolution at a general meeting.

Can an individual CA or only a firm be appointed as statutory auditor?

Both individual CAs and CA firms can be appointed. Only a firm can sign the report where a firm is appointed. Section 141 eligibility criteria apply to both.

ADT-1 Auditor Appointment Filing

Q: What is Form ADT-1 and who files it?

ADT-1 is filed by the company with MCA to inform the RoC of a statutory auditor appointment. It includes auditor details and must be filed within 15 days of the appointment.

Q: How is the first auditor of a company appointed?

By the board within 30 days of incorporation. If the board fails, members must appoint within 90 days at an EGM. The first auditor holds office until the first AGM.

Q: What happens if an auditor resigns?

The auditor files Form ADT-3 within 30 days. The company must fill the vacancy within 3 months at a general meeting and file ADT-1 for the new auditor.

Notify MCA of Your Company's Statutory Auditor Appointment Within 15 Days of the AGM

Every company is required to appoint a statutory auditor under Section 139 of the Companies Act, 2013. When an auditor is appointed or re-appointed at the Annual General Meeting, the company must inform the Registrar of Companies by filing Form ADT-1 within 15 days of the AGM. ADT-1 provides MCA with the details of the appointed auditor — their name, registration number, appointment period, and the nature of appointment (first appointment, re-appointment, or casual vacancy filling).

The first auditor of a company is appointed by the board within 30 days of incorporation, and ADT-1 must be filed within 15 days of that board appointment. Subsequent auditors are appointed by shareholders at the AGM for a term of 5 years and confirmed every year thereafter. ADT-1 filing is one of the event-based obligations within the company compliance framework and is closely linked with the AOC-4 filing since the auditor's report is a key attachment to the financial statements.

Our ADT-1 Filing Services

First Auditor Appointment

Filing ADT-1 for the board-appointed first auditor within 15 days of the board meeting that made the initial appointment within 30 days of incorporation.

AGM Auditor Appointment

Filing ADT-1 for auditors appointed or re-appointed at the AGM for a 5-year term, within 15 days of the general meeting.

Casual Vacancy Appointment

Filing ADT-1 when a new auditor is appointed to fill a casual vacancy caused by resignation, death, or disqualification of the existing auditor.

Auditor Eligibility Verification

Confirming the proposed auditor's eligibility — valid FRN, no disqualification under Section 141, and not exceeding the ceiling on number of audits permitted.

Auditor Consent & Certificate

Obtaining the auditor's written consent and certificate confirming eligibility and absence of disqualification before proceeding with the appointment.

Board Resolution Drafting

Drafting the board or shareholder resolution for auditor appointment and maintaining proper secretarial records of the appointment process.

Key Facts About Auditor Appointment and ADT-1

ADT-1 must be filed within 15 days of the AGM (or board meeting for first auditor) at which the appointment is made
An auditor is appointed for a 5-year term at the AGM under Section 139 — not just one year at a time
The auditor's written consent and eligibility certificate must be obtained before the appointment is made
Listed companies and large companies must rotate their audit firm every 10 years (two consecutive 5-year terms)
No company can appoint an auditor who is a director, employee, or indebted to the company beyond ₹5 lakh
Late filing of ADT-1 attracts additional fees of ₹100 per day beyond the 15-day window
An auditor cannot hold office in more than 20 companies (not more than 10 for public companies) at one time

Frequently Asked Questions

What is Form ADT-1 and who files it?

Form ADT-1 is filed by the company (not the auditor) to inform the Registrar of Companies about the appointment of a statutory auditor. It contains details of the auditor's name, firm registration number, appointment date, nature of appointment, and the period for which the appointment is made. It is filed on the MCA21 portal and must be digitally signed by a director of the company.

How is the first auditor of a company appointed?

The first auditor of a company (other than a government company) is appointed by the board of directors within 30 days of the date of registration of the company. If the board fails to appoint within 30 days, the members must appoint the auditor within 90 days at an extraordinary general meeting. The first auditor holds office until the conclusion of the first AGM.

Can an auditor be removed before the end of their 5-year term?

Yes, but only with prior approval of the Central Government. A company wishing to remove an auditor before the expiry of their term must obtain prior approval through Form ADT-2 before passing the special resolution for removal at a general meeting. This requirement ensures auditor independence and prevents arbitrary removal by management to suppress adverse findings.

What happens if an auditor resigns?

When an auditor resigns, they must file Form ADT-3 with MCA within 30 days of resignation, stating the reasons for resignation. The company must then fill the casual vacancy by appointing a new auditor at a general meeting within 3 months and file ADT-1 for the new appointment. The resigned auditor's statement in ADT-3 is a public document — ensuring accountability for the reasons behind the resignation.

Is an individual CA or only a CA firm eligible for statutory audit?

Both an individual Chartered Accountant in practice and a firm of Chartered Accountants can be appointed as statutory auditor. However, only a firm (not an individual CA) can sign the audit report where the firm has been appointed. Individual CAs appointed as auditors sign in their own name with their individual membership number. The eligibility criteria under Section 141 (independence, no disqualification) apply equally to individuals and firms.