Appointment of Auditor under the new Companies Act.

A Summary of procedure

First the Company should obtain a consent letter and certificate from the proposed auditor. The audit Committee should propose and recommend the auditor to the Board, if there is an audit committee. The Board recommend the appointment of the auditor to the members in Annual General meeting (A G M). The Company has to inform the auditor regarding the appointment after the appointment by members in A G M. The Company has also to file a notice of appointment of Auditor to the Registrar of Companies within 15 days of the Annual General Meeting in which the appointment is made.

A formal letter format seeking eligibility of auditor is given below

date
Address of the Auditor/firm
Dear Sirs
Sub	:	(Re-)appointment as Statutory Auditors of the Company.
With reference to the above subject, we wish to (re-)appoint you/your firm  as the Statutory Auditors of the company
Please let us know that you are duly qualified and eligible for this appointment as per the provisions of section 139 and 141 of the Companies Act, 2013 and rules made there under and your written consent to act as Statutory Auditors of the Company from the conclusion of ensuing Annual General Meeting to the ….th Annual General Meeting.
You are also requested to issue a certificate to the company under Section 139(1) of the Companies Act, 2013 on the following matters: 1.   You/the firm satisfies the criteria provided under Section 141 of the Companies Act, 2013; 2.   the individual or the firm is eligible for appointment and is not disqualified for appointment under the Companies Act, 2013 the Chartered Accountants Act, 1949 and the rules or regulations made there under; 3.   the proposed appointment is as per the term provided under the Companies Act, 2013 ; 4.   the proposed appointment is within the limits laid down by or under the authority of the Companies Act, 2013 ; 5.   Details of any order or pending proceeding relating to professional matters of conduct against the auditor before the Institute of Chartered Accountants of India or any competent authority or any Court. and the list of proceedings against (you)   or the firm or any partner of the audit firm pending with respect to professional matters of conduct, as disclosed in the certificate, is true and correct.
Yours truly Company Secretary