| Auditors | |||
| S No | Title | The Companies Act, 2013 | The Companies Act, 1956 |
| 1 | Appointment of First Auditor | Section 139 Board shall appoint within 30 days from the date of registration of the company. |
Section 224 Board shall appoint within one month from the date of registration of the company. |
| 2 | Ceiling limits of Auditors | Section 141 Maximum of 20 companies including Private Companies |
Section 224 Maximum of 20 companies excluding Private companies. No ceiling limit on Private Companies |
| 3 | Tenure | Section 139 Auditor shall be appointed for 5 consecutive years subject to ratification by members at every Annual General Meeting (AGM). Transtititonal period of three years has been given to listed companies and class of companies as provided under the rules. |
Section 224 From the conclusion of the AGM in which the appointment is made to the conclusion of next AGM. |
| 4 | Retirement by Rotation | Section 139 Individual auditor/Firm shall retire after the expiry of 5 years or 10 years, as the case may be. This is applicable to all listed companies and prescribed class of companies. |
No such provision existed |
| 5 | Reporting of Fraud | Section 143 Auditor shall report to the Central Government, if he/it has a reason to believe that fraud is being or has been committed against the company by officers and employees of the company. |
No such provision existed |
| 6 | Services not to be rendered | Section 144 Auditors shall not render certain services as specified in the section to the company/its subsidiaries/its Holding companies |
No such provision existed |
| 7 | Filing of forms with MCA | Appointment: Prescribed form is ADT-1 has to be filed by the company with 15 days of the meeting in which auditor is appointed. Resignation: Form ADT-3 to be filed by the Auditor Removal: Form ADT-2 to be filed for application to Central Government to remove the auditor before the expiry of the term Reporting of fraud: Form ADT-4 to be filed by the Auditor for reporting of frauds to Central Government |
Appointment: Prescribed form 23B has to be filed by the Auditor within 30 days of receiving intimation of appointment from the Company Resignation: No form is prescribed Removal: Form 24A has to be filed with Regional Director. Reporting of fraud: No such provision & form existed. |