Resignation of Auditor

When an auditor resigns—whether due to internal restructuring, conflict of interest, compliance reasons or inability to continue—the company must follow a strict procedure under the Companies Act. The resignation must be properly documented, reported to MCA and communicated to shareholders to avoid compliance gaps. A clean process ensures transparency and avoids penalties or future disputes.

What We Assist With

• Reviewing the reason and implications of auditor resignation
• Drafting Board and shareholder resolutions
• Preparing auditor resignation letter (ADT-3 support)
• Filing Form ADT-3 with MCA on behalf of the resigning auditor
• Filing Form AOC-4/AOC-4 NBFC adjustments if required
• Support for appointment of a new auditor
• Updating statutory registers and documentation
• End-to-end compliance for seamless transition

Why Proper Auditor Resignation Matters

• Mandatory compliance under Companies Act
• Prevents penalties for late filing or improper handover
• Helps maintain transparency for shareholders
• Ensures smooth transition to the new auditor
• Protects the company during future audits or assessments

Frequently Asked Questions

1. Who can resign—statutory auditor or internal auditor?

Both can resign, but statutory auditor resignation has mandatory MCA reporting requirements.

2. What form is filed after resignation?

Form ADT-3 must be filed by the auditor within 30 days of resignation.

3. Does the company also need to file anything?

Yes. The company must file Form ADT-1 for the appointment of the new auditor.

4. Is Board approval required?

Yes. The Board must note and accept the resignation, and initiate the process to appoint a new auditor.

5. Do shareholders need to approve the new auditor?

If the appointment is for the remaining term, Board approval may suffice. For longer terms, shareholder approval is required.