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Paragraph explanation

Auditing

I kindly request for an explanation of this paragraph

Divya Naik

CA Inter

★ 7K+

13-Aug-20 21:30

336

Answers (2)

For a non-govt co. First auditor shall be appointed by Board who will hold office till 1st AGM - Sec 139(6) In 1st AGM the subsequent auditor shall be appointed (an individual or firm - practicing CA) who is called a Subsequent Auditor. - Sec 139(1) A subsequent auditor can be appointed for a maximum term (period) of 5 years (so end of 1st AGM to end of 6th AGM and if another auditor is apppointed in 6th AGM such auditor shall be holding office till the next sixth AGM from such date) and a firm can be appointed for 2 continuous terms - Sec 139(2)