Pre-appointment and Post-appointment Compliances (Form ADT-1)
# Pre-Appointment and Post-Appointment Compliances
Before and after the appointment of an auditor, the company and the auditor must complete specific compliances.
## Before Appointment — Auditor's Side
The proposed auditor shall provide:
### 1. Written Consent
A written consent from the auditor confirming willingness to accept the appointment.
### 2. Certificate from Auditor
A certificate stating that:
Letter
Requirement
P
The appointment, if made, shall be within the Prescribed Limits of the Act (ceiling of 20 companies per partner under Section 141(3)(g))
L
The proposed auditor is eligible for appointment and is not disqualified under the Act, the Chartered Accountants Act, 1949 and the rules/regulations made thereunder
E
The appointment is as per the Terms provided under the Act
To
List of proceedings against the auditor or audit firm pending with respect to professional matters of conduct as disclosed in the certificate is true and correct
Memory aid: "Let the Proceedings begin" → P-L-E-T order of items + Proceedings list.
The certificate shall also indicate whether the auditor satisfies the criteria specified in Section 141.
## After Appointment — Company's Side
### Form ADT-1
The company shall inform the Registrar of Companies (ROC) of the appointment by filing Form ADT-1
Time limit: Within 15 days of the meeting in which the auditor is appointed
This is the company's duty (not the auditor's)
Worked example
### Example 1
Example 1: PQR Ltd. appointed M/s X & Co. as its auditors at AGM held on 30th September 2024. By when must Form ADT-1 be filed and by whom?
Solution: The company PQR Ltd. shall file Form ADT-1 with the ROC within 15 days of the AGM, i.e., by 15th October 2024.
### Example 2
Example 2: Before being appointed, what documents must the proposed auditor submit to the company?
Solution: The proposed auditor must submit (i) written consent to accept the appointment, and (ii) a certificate stating that the appointment is within statutory limits, the auditor is eligible and not disqualified, the appointment is per the terms of the Act, and disclosing any pending professional misconduct proceedings.
⚠️ Common exam mistakes
Confusing the 15-day ADT-1 filing duty (company's duty) with the auditor's pre-appointment consent and certificate.
Forgetting that the certificate must indicate compliance with Section 141 (eligibility criteria).
Filing ADT-1 from the date of incorporation instead of the date of the appointment meeting.
Missing the disclosure of pending professional misconduct proceedings in the auditor's certificate.
Bare-Act text Section 139(1) and Rule 4 · Companies Act, 2013 read with Rule 4 of Companies (Audit and Auditors) Rules, 2014 · click to expand
Section 139(1) proviso: Provided that before such appointment is made, the written consent of the auditor to such appointment, and a certificate from him or it that the appointment, if made, shall be in accordance with the conditions as may be prescribed, shall be obtained from the auditor.
Rule 4(2) of Companies (Audit and Auditors) Rules, 2014: The certificate shall also indicate whether the auditor satisfies the criteria provided in section 141.
Section 139(1) proviso (2nd): Provided further that the company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment with the Registrar within fifteen days of the meeting in which the auditor is appointed.