Resignation of a statutory auditor is a regulated event under Section 140(2) of the Companies Act 2013 and Rule 8 of the Companies (Audit and Auditors) Rules 2014. The resigning auditor must file Form ADT-3 with the ROC within 30 days of resignation, stating the reasons and other facts as may be relevant. The obligation lies on the auditor, not the company; failure attracts a penalty of ₹50,000 or remuneration, whichever is lower, plus continuing daily fines, with a maximum cap.
Resignation creates a casual vacancy that the company must fill within 30 days through the Board (or by shareholders if mandated under Sec 139(8)). Our Auditor Resignation Services cover the full chain — drafting of resignation letter and reasons, board acceptance, ADT-3 filing on MCA V3, casual vacancy compliance, fresh auditor appointment via ADT-1, statutory disclosures, and downstream coordination with banks, lenders, regulators, and stock exchanges (for listed companies).
Routine voluntary resignation by the statutory auditor — drafted resignation letter, board acceptance, ADT-3 filing within 30 days, and a fresh ADT-1 by the company.
For BSE / NSE listed companies — SEBI LODR Reg 30 disclosure, audit-committee acceptance, exchange intimation, and resigning auditor's detailed reasons under Reg 33.
Where the auditor becomes disqualified under Sec 141 mid-term — independence breach, audit-firm changes, or rotation cap reached — structured exit and ADT-3 filing.
Resignation due to scope limitation, disagreement on accounting treatment, or non-cooperation by management — careful drafting of reasons in ADT-3 to protect the auditor.
Where the auditor resigns from multiple group companies in one cycle — synchronized ADT-3 filings, casual vacancy management, and successor onboarding across entities.
For auditors who missed the 30-day window — belated ADT-3 with additional fees, penalty assessment, and ICAI disciplinary defence to mitigate downstream consequences.
Mandates the resigning auditor to file Form ADT-3 with the ROC within 30 days of resignation, stating reasons and other facts that may be relevant.
The prescribed e-form filed by the resigning auditor — captures resignation date, reasons, last audit completed, and pending audit matters at the time of exit.
A casual vacancy arising from resignation must be filled by the Board within 30 days, and approved by shareholders within 3 months of the Board's recommendation.
Failure to file Form ADT-3 within 30 days attracts a penalty of ₹50,000 or remuneration (whichever is lower), plus daily fines beyond the default, with a statutory cap.
Body corporate (other than LLPs of CAs), partnership / shareholding in audited company, indebtedness above thresholds, or holding interest in subsidiaries — all trigger vacation of office.
Listed companies must disclose auditor resignation under Reg 30 within statutory timelines, with detailed reasons under Reg 33 in select cases.
The resigning auditor must comply with ICAI Code of Ethics on professional communication with successor, retention of working papers, and confidentiality.
The incoming auditor takes over audit responsibilities for the unfinished period; the resigning auditor's working papers and audit conclusions must be available for handover.
Advisory on the optimal exit timing, reason framing in ADT-3, and pre-resignation working-paper closure to minimise downstream professional and regulatory risk.
Drafting of the formal resignation letter to the Board, capturing effective date, reasons, status of pending audit, and obligations under Sec 140(2).
Coordination of the company's board meeting accepting the resignation, drafting the SS-1 compliant resolution and minutes, and certified resolution copy.
End-to-end ADT-3 preparation on MCA V3 — auditor details, resignation date, reasons, attachments, DSC affixation, fee payment, and SRN tracking.
Helping the company fill the casual vacancy under Sec 139(8) — board appointment within 30 days, shareholder ratification within 3 months, and ADT-1 by the company.
Coordination of professional communication with the incoming auditor under ICAI Code, NOC, and structured handover of working papers and audit observations.
Diagnostic on Sec 141 disqualification triggers — independence, indebtedness, business relationship — to confirm whether resignation is mandated by law.
For listed clients — SEBI LODR Reg 30 / 33 disclosures, audit-committee minutes, stock-exchange intimations, and investor-side communication drafting.
For missed 30-day windows — belated ADT-3 filing with additional fees, mitigation strategy, and ICAI / NFRA representation where penalty proceedings have begun.
Coordinated resignation across multiple group companies — synchronized board cycles, bulk ADT-3 filings, and successor onboarding for the entire group.
Pre-exit closure of audit files, working-paper retention, audit-evidence archival, and ICAI-compliant retention norms before official resignation date.
Drafting and despatch of resignation intimations to banks, lenders, and regulators — protecting both the company's relationships and the auditor's professional standing.
Audit firm has decided to resign for capacity, conflict, or strategic reasons — needs clean ADT-3 within 30 days to avoid Sec 140(3) penalty.
Independence breach, indebtedness above threshold, or audit-firm changes triggering Sec 141 vacation of office — mandatory exit.
Disagreement on accounting policies, scope limitation, or non-cooperation by management — resignation with carefully drafted reasons in ADT-3.
Listed company audit firm resigning — needs LODR Reg 30 / 33 disclosure, audit committee acceptance, and stock-exchange filings.
Audit firm exiting from multiple group companies — synchronized resignations, bulk ADT-3 filings, and successor planning for the entire group.
30-day window already missed — belated ADT-3 with mitigation strategy and representation before ROC / ICAI / NFRA proceedings.
Incoming auditor seeking professional communication and working papers — structured handover and ICAI-Code compliant closure.
Resignation in middle of audit period — special care on disclosures, working-paper position, and successor's audit-completion obligations.
Trigger analysis (voluntary / disqualification / disagreement), Sec 141 check, timeline mapping, reason framing, and listed-company disclosure planning.
Drafting resignation letter with reasoned annexure, working-paper closure, professional-ethics compliance, and pre-resignation evidence preservation.
Coordination of company board meeting accepting resignation, certified resolution, audit-committee record (listed), and effective-date confirmation.
End-to-end ADT-3 filing on MCA V3 within 30 days — DSC affixation, reasons annexure, fee payment, SRN tracking, and PUCL handling.
Professional communication to successor, working-paper handover, ADT-1 by company for replacement, and audit-trail closure for the entire cycle.
Partner with our secretarial-practice specialists for end-to-end auditor resignation — strategy, drafting, board acceptance, ADT-3 filing, casual vacancy compliance, and successor handover for FY 2026–27.
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