{"id":39985,"date":"2022-02-09T12:19:29","date_gmt":"2022-02-09T06:49:29","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=39985"},"modified":"2024-04-23T15:17:15","modified_gmt":"2024-04-23T09:47:15","slug":"is-it-mandatory-to-file-adt-1-for-auditors-appointment","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/","title":{"rendered":"Is it Mandatory to File ADT 1 for Auditor&#8217;s Appointment?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Each business entity is expected to\nperform the audit regularly, quarterly, or monthly, half-yearly or annually\nthrough the appointed Auditor. The Company must complete a financial balance\naudit to check the Company&#8217;s work process. This blog will pen down what is\nADT-1 and when necessary to file ADT 1.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#What_is_Form_ADT_1\" >What\nis Form ADT 1?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#Purpose_of_the_appointment_of_the_Auditor\" >Purpose\nof the appointment of the Auditor-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#When_to_file_an_ADT_1\" >When\nto file an ADT 1?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#Appointment_of_First_Auditor\" >Appointment\nof First Auditor-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#Subsequent_Appointment_of_Auditor\" >Subsequent\nAppointment of Auditor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#Appointment_an_Auditor_other_than_Retiring_Auditor_%E2%80%93\" >Appointment\nan Auditor other than Retiring Auditor &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#Process_for_appointing_the_Auditor_other_than_the_retiring_Auditor_by_a_special_Notice\" >Process\nfor appointing the Auditor other than the retiring Auditor by a special Notice-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#What_documents_are_required_to_be_attached_with_the_ADT-1_Form\" >What\ndocuments are required to be attached with the ADT-1 Form?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/is-it-mandatory-to-file-adt-1-for-auditors-appointment\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Form_ADT_1\"><\/span>What\nis Form ADT 1?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>ADT-1 form is filed to inform the\nRegistrar of Companies about the appointment of its Auditor every year in a specified\nmanner. According to section 139(1) of the Companies Act, 2013, when a company\nappoints an auditor, the Company must file ADT 1 to inform the ROC about the\nappointment, and it must be filed within 15 days of its general meeting or\nfirst board meeting.<\/p>\n\n\n\n<p>ADT 1 is an intimation filed by every\nCompany with the ROC at the MCA portal about the appointment of the Company&#8217;s\nAuditor. After the annual general meeting, ADT 1 is required to be filed with\nROC every year as a notice of appointment of the Auditor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose_of_the_appointment_of_the_Auditor\"><\/span>Purpose\nof the appointment of the Auditor-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Purpose of appointing the auditors in\nthe Company is to protect the shareholders&#8217; interests. The Auditor is obliged\nby the law to review the Company&#8217;s accounts and notify them of the Company&#8217;s\nactual financial status. Also, the Auditor gives its independent opinion to the\nCompany&#8217;s owners or shareholders to ensure that the Company is safe and stable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_to_file_an_ADT_1\"><\/span>When\nto file an ADT 1?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>ADT-1 Form must be filed with the ROC within 15 days of the AGM in which the Auditor was appointed or reappointed. Supposing, if the Company&#8217;s AGM was held on 30th August 2021, the Company must file the Form ADT 1 on the <strong>MCA portal<\/strong> by 14th September 2021.<\/p>\n\n\n\n<p>ADT-1 ought to be filed <strong>within 15 days of duration from the Company&#8217;s first board meeting<\/strong> in case of new <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>company incorporation<\/strong><\/a>. The first board meeting shall be held <strong>within 30 days of incorporation <\/strong>wherein the Board of directors appoints the Auditor of the Company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Important\npoints to be considered while filing ADT 1<\/h3>\n\n\n\n<ul>\n<li>Filing\nof Form ADT 1 is the Company&#8217;s sole responsibility, and it is not a\nresponsibility of an auditor to file the Form.<\/li>\n\n\n\n<li>It\nis mandatory to file Form ADT-1 by all the companies be its listed, public, private,\nunlisted, or any other company, <\/li>\n\n\n\n<li>If\nin the case of casual vacancy in a company, then also Company needs to file\nForm ADT-1 for the appointment of the Auditor.<\/li>\n\n\n\n<li>However,\nit is not necessary to file Form ADT 1, at the time of the appointment of first\nAuditor of the Company. But, it is recommended to file Form ADT-1.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appointment_of_First_Auditor\"><\/span>Appointment\nof First Auditor-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Provision of the Companies\nAct, its Board of directors that names the first Auditor within 30 days from\nthe incorporation&#8217;s date. <\/p>\n\n\n\n<p>However, if the Board does not appoint\nthe Auditor, the Member shall appoint an auditor at the Extra-Ordinary General\nMeeting within 90 days. An auditor would retain the office till the end of the\nfirst Annual General Meeting. It is the Company&#8217;s responsibility to file the\nADT 1 with the ROC along with the requisite fees.<\/p>\n\n\n\n<p>In the case of government companies, the\nCAAG (i.e. Comptroller &amp; Auditor-General of India) shall appoint the first\nAuditor within the duration of <strong>sixty days<\/strong> from the date of its\nincorporation. If the Auditor General of India fails to nominate such an\nauditor within the stipulated time, the Auditor is appointed by the BODs within\nthe next <strong>thirty days<\/strong>. The First Auditor appointed by the BOD shall hold\noffice till the end of the First Annual General Assembly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Subsequent_Appointment_of_Auditor\"><\/span>Subsequent\nAppointment of Auditor<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The subsequent Auditor to be appointed shall remain in the office until the end of the sixth <a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><strong>Annual General Meeting<\/strong><\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tenure\nof Auditor&#8217;s<\/h3>\n\n\n\n<p><strong>The Company shall nominate or reappoint:\n&#8211;<\/strong><\/p>\n\n\n\n<ul>\n<li>In\ncase of an individual, an auditor for not more than a period of five years in a\nconsecutive; and<\/li>\n\n\n\n<li>In\nthe case of Auditor firm for not more than two terms of 5 consecutive years as\nan auditor:<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appointment_an_Auditor_other_than_Retiring_Auditor_%E2%80%93\"><\/span>Appointment\nan Auditor other than Retiring Auditor &#8211;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After the expiry of tenure of Existing\nAuditor, A company can appoint any Individual or Firm other than Retiring\nAuditor, if- <\/p>\n\n\n\n<ul>\n<li><strong>In\ncase of an individual auditor<\/strong>\nhas completed his one term of five consecutive years, he shall not be eligible\nfor re-appointment as an auditor in the same Company for five years from the\ncompletion of his appointment period.<\/li>\n\n\n\n<li><strong>In\ncase of an audit firm<\/strong>\nthat has completed its two terms of five consecutive years, shall lose its\ncandidature for re-appointment in the same organization for five years from the\nexpiry of such period.<\/li>\n<\/ul>\n\n\n\n<p><strong>Steps required for such appointment-<\/strong><\/p>\n\n\n\n<ol>\n<li>Special Notice is a mandate for a\nresolution at an AGM appointing a person other than a retiring auditor as\nAuditor.<\/li>\n\n\n\n<li>The Auditor shall also have to declare in\nthe certificate that the individual\/firm meets the criteria cited under section\n141 of the Companies Act, 2013. <\/li>\n\n\n\n<li>The Qualifications and Experience of the\nProposed Auditor shall be considered<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Process_for_appointing_the_Auditor_other_than_the_retiring_Auditor_by_a_special_Notice\"><\/span>Process\nfor appointing the Auditor other than the retiring Auditor by a special Notice-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol>\n<li>Send a special notice to the members of the Company.<\/li>\n\n\n\n<li>Convene a general meeting<\/li>\n\n\n\n<li>File form MFT-14 with the ROC for passing of Special resolution.<\/li>\n\n\n\n<li>Once the <a href=\"https:\/\/corpbiz.io\/learning\/appointment-of-auditor-companies-act-2013\/\"><strong>appointment of Auditor <\/strong><\/a>is made, the Company shall inform the Auditor about the appointment and file a notice of such appointment to the ROC in E-form ADT 1 within 15 days of the AGM.<\/li>\n<\/ol>\n\n\n\n<p><strong><em>Note-A company shall file the necessary\nforms to the ROC along with the requisite attachments.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_documents_are_required_to_be_attached_with_the_ADT-1_Form\"><\/span>What\ndocuments are required to be attached with the ADT-1 Form?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Below-mentioned documents must be\nattached to Form ADT 1-<\/p>\n\n\n\n<ol>\n<li>Auditor&#8217;s<em> written approval <\/em><\/li>\n\n\n\n<li><em>Copy of Board\nresolution or a resolution passed in Annual General Meeting <\/em><\/li>\n\n\n\n<li><em>A declaration\nfrom the Auditor stating that they or the firm is not disqualified or\nineligible to be appointed as an Auditor.<\/em><\/li>\n\n\n\n<li><em>Copy of\nCompany&#8217;s disclosure to the Auditor.<\/em><\/li>\n<\/ol>\n\n\n\n<p><strong>E-filing of Form ADT 1 with MCA E-filing<\/strong><\/p>\n\n\n\n<p>Form ADT 1 can be filed digitally &amp;\ncan be downloaded from the Ministry of Corporate Affairs. Also, the e-form is\napproved automatically.<\/p>\n\n\n\n<p>After the successful filing of the\nE-Form, the respective Authority sends an acknowledgment email to the\nregistered email address.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form ADT 1 is mandatory when it comes to the appointment of an auditor in your Company. Companies are required to file Form ADT-1 within the 15-day period. Except in the case of appointment of the first Auditor, Every Company must file Form ADT-1 with the Registrar of Companies to notify them of the appointment of an auditor.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/appointment-and-removal-of-auditor-in-a-privately-held-organization\/\">Appointment and Removal of Auditor in a Privately-held Organization\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Each business entity is expected to perform the audit regularly, quarterly, or monthly, half-yearly or annually through the appointed Auditor. The Company must complete a financial balance audit to check the Company&#8217;s work process. This blog will pen down what is ADT-1 and when necessary to file ADT 1. What is Form ADT 1? ADT-1 [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":39990,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[2112],"acf":{"service_id":"321"},"authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220303-WA0005.jpg","authorDescription":"A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.","postViews":9533,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39985"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=39985"}],"version-history":[{"count":16,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39985\/revisions"}],"predecessor-version":[{"id":63793,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/39985\/revisions\/63793"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/39990"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=39985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=39985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=39985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}