Who appoints first auditor of MCQ?

The board of directors shall appoint first auditor of a company5. With in one month of completion of capital subscription state of the company1.

Who appoints the first auditor?

By Board of Directors of the Company–

According to Section 139(6) the first auditor should be appointed by the board of directors within 30 days from the registration of the company. Company holds the board meeting and appoint the same.

Who appoints the company auditor Mcq?

5. The board of directors shall appoint first auditor of a company.

Who appoints an auditor?

After incorporation of a company in the first annual general meeting, an Auditor must be appointed by the Board of Directors. The Auditor will typically hold term till the conclusion of 6th AGM or 5 years. The appointment of an Auditor can also be made for a period of 1 year, renewable at each annual general meeting.

Who is first auditor in India?

The first Auditor General (Sir Edward Drummond) was appointed in 1860 and had both accounting and auditing functions.

Appointment of First Auditor - Company Audit - Auditing and Assurance

Can first auditor be appointed in EGM?

The First Auditor of a business other than a government business must be appointed by the Board within 30 days of its incorporation, according to section 139 of Companies Act, 2013. In the event that the Board fails, an EGM (Extraordinary General Meeting) must be called within 90 days to appoint the First Auditor.

Who is father of auditing?

Lawrence Sawyer (1911-2002), is called as “the father of modern internal auditing” who perceived the theory of Internal Auditing.

Who appoints the independent auditor?

Auditors must be appointed upon incorporated by the incorporators or subsequently by the directors of the company within stipulated timeframes. The first auditors of a company hold office until the first Annual General Meeting (AGM), and are re-appointed on an annual basis at every AGM.

Can first auditor be appointed as subsequent auditor?

03 December 2016 Yes. if First auditor is appointed as subsequent auditor, he has to be appointed for 5 years from the date of AGM as per sec. 139(1). his period as first auditor will not be counted, when he is appointed as regular auditor.

How are auditors appointed and removed?

As per sub-section (1) of section 140, the auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf.

Can first auditor be appointed in AGM?

Auditor at First AGM with the written consent and a certificate of Auditor. The appointment is done by the members He will hold office till the end of the 6th Annual General Meeting (AGM). The appointment shall be in accordance with the conditions laid down by the auditor.

Under which section a company auditor is appointed Mcq?

[D] Section 242(B).

Is first auditor appointment mandatory?

It is mandatory to file Form ADT-1 by all the companies be its listed, public, private, unlisted, or any other company, If in the case of casual vacancy in a company, then also Company needs to file Form ADT-1 for the appointment of the Auditor.

How do I make an appointment to my first auditor?

Can we appoint first auditor for 5 years?

Answer: Yes, Company can re-appoint First Auditor at its First Annual General Meeting, who shall hold office for the period of Five Years from the conclusion of that First Annual General till the conclusion of its Sixth Annual General Meeting.

Who appoints the chief audit executive?

King III proposes that every company appoints an audit committee comprising at least three independent non-executive directors. shareholders approve the appointment of the chairman to the audit committee at the annual general meeting.

Who should appoint the external auditor?

External auditors are independent auditors appointed by the company's shareholders; they usually belong to Certified Public Accountant Firm (CPA) to help remove any bias in the company's financial review.

Does audit committee appoint external auditors?

Audit committees of listed companies are directly responsible for the appointment, compensation, and oversight of the independent auditor, including the resolution of any disagreements with management.

Who was the first auditor?

Section 139(6) of the Companies Act, 2013 lays down that first auditor of a company, other than a Government company, shall be appointed by the Board of Directors within 30 days from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of ...

Who was the first auditor in the world?

The first recorded auditors were the spies of king Darius of ancient Persia (522 to 486 B.C.). These auditors acted as “the King's ears” checking on the behaviour of provincial satraps (a provincial governor in ancient Persia).

Which is the first book of accounting?

Accountancy can be traced all the way back to the 13th century, yet the first bookkeeping reserve—Suma de Arithmetica, Geometria, Proprtioni et Proportionalita—was published in Venice in 1494 by Fra Luca Pacioli, traditionally known as the "Father of Accounting." The Library of Congress currently holds translations and ...

How do you appoint an auditor in an EGM?

As the Board of Directors of a Company cannot, except with the consent of Members in General Meeting by an ordinary resolution, appoint any person as an Auditor of the Company. The Directors, therefore, recommend the Ordinary Resolution for approval of the shareholders.

When was the first auditor of the company made compulsory in India?

In India, thecompanies Act 1913 made audit of company accountscompulsory with the increase in the size of the companies and the volume oftransactions. The main objective of audit shifted to ascertaining whether theaccounts were true and fair rather than true and correct.

Which resolution is needed to appoint the first auditor of private company?

SECTION 268: POWER OF REGISTRAR TO APPOINT AUDITORS OF PRIVATE COMPANY. If a private company fails to appoint an auditor, the Registrar may appoint one or more auditors upon application writing from any member of the company.