Audit the records. Conformation with Company Law, confirmed.
Secretarial audit is an audit to check compliance of a variety of legislations including the Companies Act and other corporate & economic laws applicable to company. Secretarial audit is a process to check compliances made by a company under Corporate Law and other relevant laws, rules, regulations and procedures etc.
A detailed secretarial audit helps:
It is report on compliance of SEBI act, circulars, regulations, guidelines etc. So, it specifically deals with SEBI regulation angel.
Format of Secretarial Audit Report will continue to be MR-3.
Only the member of Institute of Company Secretaries of India holding Certificate of Practice can conduct Secretarial Audit.
If a company or any officer of the company or company secretary in practice, contravenes provisions of the section, company, every officer of the company or the company secretary in practice, who is in default, shall be punishable with fine which shall not be less than one lakh but which may extend to five lakh rupees.
The Secretarial Audit covers broad check on compliances of overall applicable acts to Company like SEBI Act, Companies Act, FEMA, Depositors Act, SCRA and other industry specific laws while the Secretarial Compliance Report covers only SEBI Act and its regulations, circulars issued there under.
A person who is a chartered accountant or firm with majority of partners practising in India can be appointed as the auditor of a company. limited liability partnership can be appointed as the auditor of company, but only chartered accountant partners will be authorised to act and sign on behalf of the firm.
Yes, auditor can be removed prior to expiry of his term only via special resolution of the company. This can only be done after securing prior written approval of the Central Government.
In case of a casual vacancy, board of directors will make a recommendation in the board meeting within 30 days of resignation. The recommendation requires approval of the members within three months from the date of the board meeting.
First auditor of the company is appointed to hold office up to conclusion of the first annual general meeting of the company as per section 139 (6) of the Companies Act.
Appointment of First Auditor of the company is done either in 1st board meeting that has to take place within 30 days of incorporation, if the appointment could not take place in the board meeting, then general meeting needs to be held within 90 days of incorporation to hold office till the conclusion of the first AGM. Further, at the first annual general meeting, auditor who shall hold office from the conclusion of that meeting until conclusion of its sixth annual general meeting is appointed.
Yes, in case of casual vacancy auditor appointment can be done by board of directors within thirty days only if the casual vacancy is not a result of resignation of auditor. If that is the case, then appointment will also have to be approved by the company at a general meeting held within three months of the board recommendation.
The Form ADT 1 is required to be filed within 15 days of appointment with attachment:
No, the director does not have the power to remove the auditor.
No, it is not mandatory to file any form with ROC on the appointment of the first auditor.