Last updated: 14 Oct 2026

Virtual Auditor

Auditor Appointment (ADT-1 Filing)

Last updated: 14 Oct 2026

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Statutory auditor appointment is mandatory for all companies under Section 139 of the Companies Act, 2013. First auditor: appointed by Board within 30 days of incorporation. Subsequent auditors: appointed at AGM for 5-year term. Form ADT-1 filed with RoC within 15 days of AGM. Virtual Auditor assists with auditor identification, board resolution drafting, and ADT-1 filing. Quick Answer: Auditor Appointment (ADT-1 Filing) — Auditor Appointment (ADT-1 Filing) by CA/CS firm. Expert filing and compliance. Virtual Auditor, since 2012.

What is Auditor Appointment (ADT-1 Filing)?

Regulatory Framework

Regulatory basis: Companies Act, 2013 — Section 139 (appointment of auditors; first auditor by the board within 30 days under Section 139(6)), Section 141 (eligibility), Section 140 (removal and resignation, Form ADT-3), Section 144 (services an auditor may not provide) and Form ADT-1 filed within 15 days of the meeting (rule 4(2), Companies (Audit and Auditors) Rules, 2014).

Auditor — First vs Subsequent Appointment

ParameterFirst AuditorSubsequent
Appointed byBoard of DirectorsShareholders at AGM
TimelineWithin 30 days of incorporationAt each AGM
FormADT-1 (within 15 days of AGM)ADT-1
TermUntil first AGM5 years (subject to ratification)

Step-by-Step Process

    Step 1

    Board identifies proposed auditor (CA firm)

      Step 2

      Obtain written consent (Form ADT-1 declaration)

        Step 3

        Pass ordinary resolution at AGM

          Step 4

          File ADT-1 with RoC within 15 days of AGM

            Step 5

            Issue appointment letter to auditor

            When Is Auditor Appointment (ADT-1 Filing) Not Required?

            A new auditor appointment may not be required when: (a) the existing auditor is within their tenure (individual: 5 years, firm: 10 years, under Section 139(2)), (b) the company is voluntarily striking off and final accounts are settled, (c) a casual vacancy has not arisen, or (d) the company is an OPC or small company using the same auditor across consecutive terms (rotation exemption applies). Auditor appointment must be ratified at every AGM.

            If you are unsure whether your situation requires auditor appointment (adt-1 filing), contact us for a free preliminary assessment. We will advise you honestly — including telling you if you do not need our services.

            Documents Required

            The following documents are needed to initiate the auditor appointment (adt-1 filing) process:

            Audited financial statements for the period under review, trial balance with sub-ledger details, bank statements for all accounts, fixed asset register, loan agreements and sanction letters, related party transaction details, statutory compliance records (GST returns, TDS returns, ROC filings), and minutes of board meetings and general meetings.

            We provide a personalised document checklist after the initial consultation, tailored to your specific entity type and situation. Documents can be shared securely via email or our client portal.

            What You Receive

            Upon completion of the auditor appointment (adt-1 filing) engagement, you will receive: Audit report in the prescribed format (CARO, tax audit report Form 3CD, etc.), management letter highlighting observations and recommendations, detailed working papers (provided to management on request), compliance summary with risk areas identified, and a presentation-ready summary for board/stakeholder review.

            All deliverables are reviewed by CA V. Viswanathan (FCA, ACS, CFE, IBBI RV) before release to ensure accuracy and regulatory compliance.

            Updated for FY 2025-26

            This service page reflects the latest regulatory requirements as of March 2026, incorporating changes from the Union Budget 2025, recent MCA notifications, CBDT/CBIC circulars, and RBI master directions applicable to auditor appointment (adt-1 filing). Virtual Auditor continuously monitors regulatory updates to ensure all advice and filings are current.

            What has changed in the law — reviewed October 2026

            • Income-tax Act, 2025: assented to on 21 August 2025 and in force from 1 April 2026, it replaces the Income-tax Act, 1961 for tax year 2026-27 onward, and the Income-tax Rules, 2026 (notified 20 March 2026) replace the 1962 Rules. Section and rule numbers on this page are those of the 1961 Act and 1962 Rules, which continue to govern assessments, appeals and pending proceedings for assessment years up to 2026-27; for tax year 2026-27 onward the corresponding provisions of the 2025 Act apply, and our engagement letters quote both.
            • MCA General Circular No. 05/2026 (24 October 2026): FY 2025-26 financial statements in AOC-4, AOC-4 (CFS), AOC-4 (XBRL) and AOC-4 NBFC (Ind AS) may be filed up to 31 December 2026 and annual returns in MGT-7/MGT-7A up to 31 January 2027 without additional fees. The AGM date, ADT-1, MGT-14 and LLP Form 8/11 are not extended, and a filing after the relaxed date is charged from the original due date. See virtualauditor.in/learn/mca-annual-filing-extension-fy-2025-26-aoc-4-mgt-7/

            Frequently Asked Questions

            When must the first auditor be appointed?
            Within 30 days of incorporation by the Board of Directors. Ratified by shareholders at the first AGM.
            What is the auditor rotation requirement?
            For listed companies and certain classes of companies: individual auditor — maximum 5 consecutive years. Audit firm — maximum 10 consecutive years. Cooling off: 5 years before reappointment.
            When must a statutory auditor be appointed?
            Within 30 days of incorporation (first auditor). Subsequently at every AGM. First auditor holds office until conclusion of first AGM. Subsequent auditors: 5-year term (individual) or 10-year term (firm).
            Can a company change its auditor mid-term?
            Yes, but requires special resolution and approval from Central Government (NCLT). Casual vacancy (resignation): board fills within 30 days, AGM ratifies. Rotation mandatory for listed companies.
            What is the penalty for not appointing an auditor?
            Company: fine ₹25,000/month. Officers in default: imprisonment up to 1 year or fine ₹5,999 (professional fees only; govt fees and stamp duty extra)-₹1 lakh. NCLT can appoint auditor if company fails to do so.
            What form is filed for auditor appointment?
            ADT-1 (Notice of Appointment) filed with RoC within 15 days of AGM. Includes written consent of auditor and eligibility certificate. DSC of director required.
            Can an LLP appoint any CA as auditor?
            Yes. LLPs have no rotation requirement. Any CA in practice can be appointed. Audit needed only if turnover >₹40 lakhs or contribution >₹25 lakhs.
            Which audit or review applies, and what will the work actually cover?
            Every company needs a statutory audit of its financial statements by a chartered accountant appointed under section 139 of the Companies Act, reporting under section 143 and, where it applies, the CARO 2020 order and on internal financial controls. An LLP needs an audit when its turnover exceeds ₹40 lakh or its contribution exceeds ₹25 lakh. A tax audit is needed when business turnover or professional receipts cross the income-tax limits. An internal audit is required for prescribed classes of companies (section 138). A statutory auditor cannot also provide certain other services to the same company (section 144). We confirm which audits apply, agree the scope and timetable in an engagement letter, and list the records needed.
            When must Form ADT-1 be filed?
            Within 15 days of the general meeting at which the auditor is appointed (rule 4(2), Companies (Audit and Auditors) Rules, 2014). For the first auditor appointed by the board under Section 139(6) the rules do not require ADT-1, but filing it is common practice and we recommend it.
            What happens if the company does not comply with the auditor provisions?
            Under Section 147(1), the company is punishable with a fine of ₹25,000 to ₹5,00,000 and every officer in default with a fine of ₹10,000 to ₹1,00,000.

            Available Across India

            Audit Services in every state and major city. Click to view location-specific details, fees, and regulatory information.

            States (28)
            Andhra PradeshArunachal PradeshAssamBiharChhattisgarhGoaGujaratHaryanaHimachal PradeshJharkhandKarnatakaKeralaMadhya PradeshMaharashtraManipurMeghalayaMizoramNagalandOdishaPunjabRajasthanSikkimTamil NaduTelanganaTripuraUttar PradeshUttarakhandWest Bengal
            Union Territories (8)
            Andaman & NicobarChandigarhDadra Nagar Haveli & Daman DiuDelhiJammu & KashmirLadakhLakshadweepPuducherry
            Cities (80)
            Adyar, ChennaiAgraAhmedabadAmbattur, ChennaiAmritsarAndheri, MumbaiAnna Salai, ChennaiAurangabadBannerghatta Road, BangaloreBhopalBhubaneswarBKC, MumbaiChandigarh CityCoimbatoreDehradunElectronic City, BangaloreFaridabadFort Churchgate, MumbaiGhaziabadGoa CityGoregaon, MumbaiGuindy, ChennaiGurugramGuwahatiHebbal, BangaloreHSR Layout, BangaloreHubli DharwadHyderabadIndiranagar, BangaloreIndoreJaipurJammuJayanagar, BangaloreJodhpurKanpurKochiKolkataKoramangala, BangaloreLower Parel, MumbaiLucknowLudhianaMaduraiMalad, MumbaiMangaloreMarathahalli, BangaloreMeerutMG Road, BangaloreMylapore, ChennaiMysuruNagpurNariman Point, MumbaiNashikNavi Mumbai, MumbaiNew DelhiNoidaNungambakkam, ChennaiOMR, ChennaiPanajiPatnaPorur, ChennaiPowai, MumbaiPuneRaipurRajkotRanchiSalemShimlaSuratT Nagar, ChennaiThane CityThane, MumbaiThiruvananthapuramTiruchirappalliUdaipurVadodaraVaranasiVelachery, ChennaiVijayawadaVisakhapatnamWhitefield, Bangalore

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