Evaluate statutory auditor rotation

Before you begin

Confirm the client is a company and that the correct legal form, public/private classification, listed status, small-company status, and government-company context are recorded. Obtain current evidence for paid-up share capital, public borrowings, public deposits, and every prior auditor-tenure period. Identify whether the proposed auditor is an individual or a firm and gather network, common-partner, brand, control, and cooling-off facts. Complete the affected Client Profile KYC sections and the canonical Acceptance assessment. Verify the current official law, rules, exemptions, and…

Understand when the configured rule applies

Under the configured 2026.3 Companies Act rotation rule, the product evaluates:

listed companies; unlisted public companies with paid-up share capital of at least INR 10 crore; private companies with paid-up share capital of at least INR 50 crore; and companies below the applicable share-capital threshold with public borrowings from financial institutions or banks, or public deposits, of at least INR 50 crore.

One Person Companies and small companies are excluded from the configured mandatory-rotation population. Section 8 and government-company classifications require their correct public/private and appointment context. Treat this as product guidance: verify the current official law, rules, exemptions, and effective dates for the actual appointment.

Complete the source facts

Open Client - Overview. Confirm legal form, listed status, paid-up capital, public borrowings, public deposits, small-company status, government-company status, and their retained evidence references. Conclude the Identity, Financial and regulatory, and other affected KYC sections as current Verified. Open the Lifecycle appointment or rotation case. Record auditor type, prior-tenure periods, evidence for each period, network identity, common partners, shared brand or control, and cooling-off history.

Missing numeric facts are not treated as zero. If a threshold input or classification is unknown, the result remains Insufficient information or Manual review.

Run and interpret the rotation result

Open the appointment or rotation evaluation in the case. Review the effective rule version and legal basis shown. Run or refresh the evaluation after every relevant profile or tenure change. Review one of four outcomes:

The evaluation is stored as evidence. A user cannot directly override the computed outcome.

Apply tenure and cooling-off controls

An individual auditor is limited to one term of up to five consecutive years where mandatory rotation applies. An audit firm is limited to two terms of up to five consecutive years each - ten consecutive years in total. Completion of the applicable five- or ten-year tenure triggers a five-year cooling-off period. Prior tenure included by the applicable transition rule must be recorded; do not start the count from the date the client was entered in AuditLens. A proposed successor associated with the outgoing auditor under the same network, or sharing prohibited common partners, brand,…

Complete a rotation case

Resolve all KYC, acceptance, predecessor, independence, tenure, and successor-eligibility requirements. Obtain the applicable appointment consent, eligibility certificate, resolutions, and client appointment letter. Record the successor appointment and linked statutory filing obligation. Preserve the outgoing auditor handover and the exact governed document versions used. Activate the successor mandate only after the appointment evaluation is Ready and all gates are satisfied.

Expected result

The case contains a reproducible rotation applicability result, complete tenure and cooling-off history, successor eligibility conclusion, professional communication, appointment evidence, and the linked Compliance Calendar obligation.

Related guides

Maintain and verify KYC on the client profile Manage appointment, predecessor communication, and governed letters Govern client lifecycle document masters

Related pages

• Manage appointment, predecessor communication, and governed letters
• Manage resignation, removal, non-reappointment, and handover