Smooth & Compliant Auditor Resignation Process
Auditor resignation is a sensitive compliance event that requires proper documentation, disclosures, and timely filings under the Companies Act, 2013.
N D Savla & Associates ensures the entire process is handled correctly — from drafting resignation documents to ROC filings and appointment of a new auditor.
What is Auditor Resignation?
Auditor resignation occurs when a statutory auditor voluntarily steps down before the completion of their tenure. It must be formally communicated and reported to the Registrar of Companies.
Common Reasons for Resignation
- Professional or ethical concerns
- Non-cooperation from management
- Conflict of interest
- Business or personal reasons
Key Compliance Requirements
- Resignation letter from auditor
- Filing of ADT-3 by auditor within 30 days
- Disclosure of reasons for resignation
- Board noting & documentation
- Appointment of new auditor
Forms & Filings
- Form ADT-3: Filed by resigning auditor
- Form ADT-1: Filed by company for new appointment
Documents Required
- Auditor resignation letter
- Detailed reasons for resignation
- Board resolution noting resignation
- Consent & eligibility of new auditor
Process of Auditor Resignation
- Receive resignation letter from auditor
- Auditor files ADT-3 with ROC
- Board takes note of resignation
- Identify and appoint new auditor
- File ADT-1 for new auditor
- Update statutory registers
Why Choose N D Savla & Associates?
Accurate Filings
Ensure correct handling of ADT-3 & ADT-1.
Expert Advisory
Guidance on legal and compliance aspects.
Timely Execution
Avoid penalties with timely filings.
End-to-End Support
From resignation to new appointment.
Compliance Tracking
We ensure no step is missed.
Reliable Support
Trusted partner for ROC compliance.
Frequently Asked Questions
Who files ADT-3 in case of auditor resignation?
The resigning auditor is responsible for filing Form ADT-3 with the ROC within 30 days.
Is it mandatory to disclose reasons for resignation?
Yes, the auditor must provide detailed reasons while filing ADT-3.
What should the company do after auditor resignation?
The company must appoint a new auditor and file ADT-1 within the prescribed time.
What is the penalty for non-filing of ADT-3?
Late filing attracts additional fees and may lead to compliance issues for the auditor.
Can an auditor resign anytime?
Yes, but proper procedure and compliance filings must be followed.
Is Board approval required for resignation?
The Board does not approve resignation but must formally take note of it.