appointment of Sole proprietor firm of CA u/s 226

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ANAND (Querist)

28 January 2011 Section 226 (1) read as"226. Qualifications and disqualifications of auditors.
(1) A person shall not be qualified for appointment as auditor of a company unless he is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (48 of 1949 ):

Provided that a firm whereof all the partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company, in which case any partner so practising may act in the name of the firm."

MY QUERY IS WHETHER THIS SECTION PROHIBITS FROM APPOINTING A FIRM OF SOLE PROPRIETOR CHARTERED ACCOUNTANT IN THE NAME OF FIRM? SAY CA XYZ IS PROPRIETOR OF XYZ & CO. WHETHER A COMPANY CAN APPOINT IT BY STATING FIRM NAME?

udit sharma

udit sharma (Expert)

28 January 2011 If the sole proprietor does not suffer from any of the disqualificaions, specified in section 226 of the Companies Act, 1956, he can be appointed as such by his Firm's name.

God Bless

CS Udit Sharma

ANAND

ANAND (Querist)

28 January 2011 But what is the base for your answer? If you see the wordings of the section it says that an appointment can be made in firm name only if it is a partnership firm.

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