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Companies bill passed and ca institute failed

P K Singh (B.Com,CS,CA) (59 Points)

08 August 2013

Dear Friends,

The much awaited Companies Bill Passed by the Rajya Sabha on 08.08.2013 and if you read the clauses relating to Auditors and National Financial Reporting Authority, you may realise that All power will go to MCA and Auditors will beggest looser in future.

Post your comments on the Companies Bill about the prospect of CA. which direction now profession will move and will we carry the same reputation and respect or else?????????

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P K Singh (B.Com,CS,CA) (59 Points)
Replied 08 August 2013

Basically, the following provisions given in the bill relating to Auditors

Every company is required at its first annual general meeting (AGM) to appoint an individual or a firm as an auditor. The auditor shall hold office from the conclusion of that meeting till the conclusion of its sixth AGM and thereafter till the conclusion of every sixth meeting. The appointment of the auditor is to be ratified at every AGM.
Individual auditors are to be compulsorily rotated every 5 years and audit firm every 10 years in listed companies & certain other classes of companies, as may be prescribed.
Auditors have to comply with Auditing Standards.
A company’s auditor shall not provide, directly or indirectly, the specified services to the company, its holding and subsidiary company.
A partner or partners of the audit firm and the firm shall be jointly and severally responsible for the liability, whether civil or criminal, as provided in this Bill or in any other law for the time being in force. If it is proved that the partner or partners of the audit firm has or have acted in a fraudulent manner or abetted or colluded in any fraud by, or in relation to, the company or its directors or officers, then such partner or partners of the firm shall also be punishable in the manner provided in clause 447.