Audit ceiling limit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 Hello

I want to know if any proprietorship firm converted to partnership firm(with 2 partner) on 10/04/2012 then whether both partner are eligible for audit of the companies and tax audit for the F.Y. 2011-12.
What are the ceiling limit of that firm,
Please reply soon. thanks in advacne

Ajay Mishra

Ajay Mishra (Expert)
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29 March 2012 Hi

As per Second proviso to section 224(1B where any partner of the firm is also a partner of
any office, firm or firms of auditors, the number of companies which may be taken into account by all the firms together, in relation to such partner, shall not exceed the specified number in the aggregate.

The expression 'specified number' means—
(i) in the case of a person or firm holding appointment as auditor of a number of companies each of which has a paid-up share capital of less than rupees twenty-five lakhs, twenty such companies;
(ii) in any other case, twenty companies, out of which not more than ten shall be companies each of which has a paid-up share capital of rupees twenty-five lakhs or more.
In computing the specified number of companies in respect of which or any part of which any person or firm has been appointed as an auditor, whether singly or in combination with any other person or firm, shall be taken into account in computing the specified number as defined in Explanation I of section 224(1C).
The following types of companies shall be excluded from reckoning specified limits, in terms of
share capital:—
(a) Guarantee companies
(b) Foreign companies
As mentioned above, as per the Companies (Amendment) Act, 2000 private companies will not be taken into account for counting the 20 number of companies audit as specified as per sub-section (1B) of
section 224.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2012 Hi

I want to know whether new qualified CA(partner) is eligible to sign those balance sheet which are already filed their 23B.Name of the firm is not changed

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