Ch 5 · Company Audit — Appointment & Reporting

📘 Core concepts

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