Remuneration of Auditors (apart from the first auditor) of the company will be determined by stakeholders in general meeting as per Companies Act 1994.
The company fixes the remuneration of the auditor in the general meeting. However, where the Board of Directors appoints the first auditors of the company they can fix his remuneration. The remuneration is in addition to the fees payable to him. It includes any expenses incurred by the auditor in relation to the audit and any facility given to him. However, this remuneration does not include any amount paid to him for the rendering of any services other than audit.
The process of determination Remuneration of auditors
- The remuneration of the auditor of the company will be fixed in a general meeting or in such a manner as may be prescribed therein. Provided the Board of directors may fix the remuneration of the first auditor appointed by them.
- The remuneration will be the fees payable to the auditor, accompanied by the expenses that are incurred by the auditor with regard to the audit of the company & any facility extended to him by the Companies Act.
Section 142
- The Remuneration of the Auditor might be fixed in a general meeting or in such a manner as may be determined. Even though the Board of directors can fix the remuneration of the First Auditor.
- The Expenses which are paid to the auditors are in addition to the audit that he carries out in the Company.