Ch 5 · Company Audit — Appointment & Reporting

5 concept points · 0 formulas · 4 exam-critical points.

📘 Core concepts

• 1Auditor of company appointed by shareholders in AGM for 5 years (Sec 139).
• 2Eligibility (Sec 141): CA in practice; firm with majority CA partners; specific disqualifications.
• 3Removal before term (Sec 140): SR + CG approval; auditor entitled to be heard.
• 4Rotation: Listed/large public co — individual auditor 5 yrs (one term), firm 10 yrs (two terms); cooling 5 yrs.
• 5CARO 2020 — Companies (Auditor's Report) Order — applies to most companies barring specified exemptions.