Resignation of Auditor
Handle auditor resignation compliantly — ADT-3 filing by the outgoing auditor, board intimation, casual vacancy appointment and new auditor filing, all within statutory timelines.
Handle your auditor's resignation
Share the details. We will handle ADT-3, casual vacancy filling and all required filings.
Talk to a CS →A complete auditor resignation package
Form ADT-3 Filing
ADT-3 filed by the resigning auditor with ROC within 30 days — includes reasons for resignation.
Resignation Letter
Drafting of resignation letter from the auditor to the company stating reasons and effective date.
Board Intimation
Board of Directors formally intimated of the resignation within the required timeline.
Casual Vacancy Filling
Board resolution appointing a new auditor to fill the casual vacancy within 30 days of resignation.
ADT-1 for New Auditor
Form ADT-1 filed by the company to intimate the ROC of the new auditor appointment.
AGM Ratification
Guidance on placing the casual vacancy appointment before shareholders at the next AGM for ratification.
What happens when an auditor resigns
ADT-3 Within 30 Days
Resigning auditor must file Form ADT-3 with the ROC within 30 days of resignation under Section 140(2).
Resignation Letter to Company
Auditor must send a written resignation letter to the company, which must be accepted by the board.
Casual Vacancy Filled by Board
Board must fill the casual vacancy by appointing a new auditor within 30 days of the resignation.
New Auditor's Consent
The incoming auditor must give written consent and confirm they are not disqualified under Section 141.
ADT-1 for New Appointment
Company must file ADT-1 to inform ROC of the new auditor within 15 days of the board appointment.
AGM Ratification
Casual vacancy appointment must be ratified by shareholders at the next Annual General Meeting.
ADT-3 penalty is significant. If the resigning auditor fails to file ADT-3 within 30 days, they face a penalty of Rs 50,000 or the fee amount whichever is less, plus Rs 500 per day of continuing default. We ensure timely filing to avoid penalties.
Common issues in auditor resignation
Simple steps, no surprises
Resignation confirmed
Resignation letter drafted and submitted to the company — effective date and reasons documented.
ADT-3 filed
Form ADT-3 filed by the outgoing auditor with ROC within 30 days of the resignation date.
New auditor appointed
Board resolution passed appointing new auditor — consent obtained and ADT-1 filed within 15 days.
AGM ratification
Appointment placed before shareholders at next AGM for ratification — resolution passed and recorded.
Other services you may need
Frequently asked questions
Form ADT-3 is filed by the resigning auditor with the Registrar of Companies (ROC) within 30 days of the resignation. It includes the statement of reasons for resignation and is mandatory under Section 140(2) of the Companies Act 2013.
Yes. An auditor can resign before completing the term of appointment. The auditor must file Form ADT-3 with the ROC within 30 days of resignation and also intimate the company and the C&AG (for government companies).
Yes. Resignation creates a casual vacancy which must be filled by the Board of Directors within 30 days. The appointment at the board level holds until the next AGM where shareholders ratify or appoint a new auditor.
The company must intimate the board and appoint a new auditor to fill the casual vacancy. The new auditor files ADT-1 for acceptance. The company's annual return will reflect the change in auditor.
Failure to file ADT-3 within 30 days attracts a penalty on the auditor of Rs 50,000 or the amount of fees paid, whichever is less, plus Rs 500 per day of continuing default up to Rs 5,00,000.
Handling an auditor resignation? Act within 30 days.
We handle ADT-3, casual vacancy appointment, ADT-1 and AGM ratification — on time, every time.