Rotation of auditors

There was no rotation as per old law.. So the companies allowed a 'transitional period' of 3 years for the companies to start following the rotation provisions. Because they may not be able to suddenly change auditors, so there is transitional period.

Angel Maria Varghese

CA Final

★ 9K+

19-Feb-23 11:34

So if an auditor functioned for 5 years he is given 3 more years (even though rotation period is 5 years) after which he should change - so total of 8 years he audits the company. And so on..

Angel Maria Varghese

CA Final

★ 9K+

19-Feb-23 11:39

At the time of implementation of rotation of auditors provision there might be some auditors who might have done audit for the same company for more than 5 years and some might have completed only 1 year. So to make adjustments for appointment of new auditors a transition period 3 years. After completion of 3 years of audit by the same auditor, if he had audited for more than 5 years then he should be ineligible for appointment as auditor in such a company for the cooling period. If he had audited for less than 5 years, he can continue up to completion of 5 years.

Samayamanthula Vivek

CA Final

★ 5K+

19-Feb-23 12:13

Thank u all..I got it now

Thread Starter

SANSKRITI BADRI 2111339

CA Final

★ 4K+

19-Feb-23 19:06