Appointment of Auditors (Audit) II

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Querist : Anonymous

Querist : Anonymous (Querist)

07 November 2010 Respected Sir B.Chackrapani Warrier and other experts, in our case as advised by you, same procedure was followed, but in our case outgoing/refusing CA was telling on telephone to our present CA your appointment is void, as section 224(3) was not followed, because in this case appointment should be done by Central Govt. When outgoing CA was asked about any objection, he did not reply withing stipulated time. Our firm was audited and all other formalties was complete. Now I want to know even if the New CA should be appointed by the Cent Govt, but new CA was appointed as following the procedure shown by you also. What are the consequences on Company Audited and on new Auditor. Please reply after going through the section 224(3).

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 November 2010 My understanding (Not opinion)expressed earlier is based on ICAI's recommendation on the same issue.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 November 2010 But in Guide to the Companies Act (Mr. A. Ramaiya,16th edition,page 2334) the view expressed is, if the auditor appointed at AGM refuses to acceptthe appointment,it may be regarded as no auditor had been appointed and thereupon the CG would be eligible to appoint auditor.

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2010 Thanking you Respected Sir B.Chackrapani Warrier for so early response two times. We have followed on ICAI's recommendation ( Please give a copy if possible) on the same issue, but as per, Mr. A. Ramaiya, as no auditor had been appointed. Now let me know what are consequences and remedy in our case on our company and on New CA.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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08 November 2010 I don't have ICAI's recommendation. But a brief reference is available in Mr. Bhandari's book.

Since there are divergent views on this matter ,I cannot say the consequences. Moreover, I have not experienced such an issue during the course of my work. However, I have shared my understanding of the issue just for your information ,among others.

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2010 Thanking you Respected Sir B.Chackrapani Warrier for so early response again, just if you can help us to provide other “divergent views” (just like Mr. A. Ramaiya,16th edition,page 2334) on the matter, so that we can save ourselves by quoting those views and that there is no malafide intention at our level in following in procedure if need arises in future.

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