What if my company has no auditor, or the auditor position becomes vacant?

Casual vacancy (s.397)

• The directors may appoint a person to fill a casual vacancy in the office of auditor.
• If the directors have not done so within one month after the vacancy arises, the members may appoint by resolution at a general meeting.

No appointment at all (s.398) A member can ask the Court to appoint the auditor for a financial year where:

• The AGM did not appoint one, or no AGM was held as required; or
• For a company that need not hold an AGM, nobody was appointed by the end of the appointment period and no one was deemed reappointed. A member can also ask the Court to appoint the first auditor, or to fill a casual vacancy, if the usual route has not been used.

Why it matters Section 394 requires an auditor for each financial year. A gap does not remove the duty; it only delays the audit and increases the risk of missing filing and tax deadlines.

What to do

1. Decide on a firm and get an engagement letter.
2. Appoint by director's resolution (casual vacancy) or members' resolution.
3. If the outgoing auditor resigned or was removed, file the required notice with the Registrar within 15 days (see the resignation and removal answers).
4. Pass on the previous auditor's workpapers information as permitted (s.414).

Take advice if members disagree and a court application looks likely.