Resignation of Auditor
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
Both can resign, but statutory auditor resignation has mandatory MCA reporting requirements.
Form ADT-3 must be filed by the auditor within 30 days of resignation.
Yes. The company must file Form ADT-1 for the appointment of the new auditor.
Yes. The Board must note and accept the resignation, and initiate the process to appoint a new auditor.
If the appointment is for the remaining term, Board approval may suffice. For longer terms, shareholder approval is required.