Sir as said auditors term in case of individual is max 5 years means can be appointed for less than 5 years so for example if being appointed for 3 years so when cooling period will start after 3 years or to wait for 2 years more to compelete 5 years? And sir again in case of firm two terms of 5 years if in first term being appointed for 3 years and if co again wants to reappoint then when to reappoint after3 years or when?

The terms for appointment of Statutory Auditors is defined under Section 139(1), which clearly stipulates that the auditor appointed shall hold office till the conclusion of sixth AGM from the AGM in which he is appointed. Thus, one can opine that the auditor cannot be appointed for one term, consisting of period less than or more than five years. So, we can say that company can not appoint auditor for 3 years.

Answer given by Shubhamm Sir at 03-Dec-2022 05:37 PM