14 January 2015
“SN & Co”, is a CA firm having Mr A, Mr B and Mr C are partners of the firm.
New CA Firm, “SN & Associates”, is formed on 10.01.2015 wherein Mr A and Mr D are partners
On 12.01.2015 Mr A Retired from SN & Co.
Presently “SN & Co”, is the Auditor of PQR Limited and Balance Sheet of PQR Limited was signed by Mr A for and on behalf of “SN & Co”for the year ended 31.03.2014.
“SN & Co” term expires as an auditor of the PQR Limited for the Financial Year 2016-2017.
Now, whether “SN & Associates”, is eligible to Appoint as an auditor of the PQR Limited for the for the Financial Year 2017-2018
14 January 2015
SN & Associates is not eligible since it has a common partner namely Mr. C in SN & co whose term is expired as per provisions of co act 2013 under sec 139(3) & (4) and under companies audit and auditors rule,2014.
14 January 2015
Ok in this case if mr c is not the common partner then there is no restriction as then they are out of the "network of for firms" also as per sec 139(3) &(4).
hence they can be appointed as auditor for fy17-18