TaxTMI 
TaxTMI 
Manner of rotation of auditors by the companies on expiry of their term.
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.... incumbent auditor on expiry of the term of such incumbent. (2) Where a company is required to constitute an Audit Committee, the Board shall consider the recommendation of such committee, and in other cases, the Board shall itself consider the matter of rotation of auditors and make its recommendation for appointment of the next auditor by the members in annual general meeting. (3) For the purp....
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....in the term for a continuous period of five years shall be considered as fulfilling the requirement of rotation; (b) if a partner, who is in charge of an audit firm and also certifies the financial statements of the company, retires from the said firm and joins another firm of chartered accountants, such other firm shall also be ineligible to be appointed for a period of five years. Illustratio....
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....Consecutive years shall mean all the preceding financial years for which the individual auditor has been the auditor until there has been a break by five years or more. Illustration explaining rotation in case of audit firm Illustration 2:- Number of consecutive years for which an audit firm has been functioning as auditor in the same company [in the first AGM held after the commencement of pro....