CA Firms in LLP As Companies' Auditors

This query is : Resolved

Arjun Hariharan (Querist)
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27 April 2009 As per Companies Act (Sec. 226 Qualifications & Disqualifications of Auditors), A Body Corporate cannot be appointed as auditors because it has Limited Liability.

In this case, if a CA Firm is registered as LLP, then, is it eligible to be appointed as auditors?

Please Clasify.

TIA, regards

Arjun

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
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27 April 2009 However, the clarification is yet to come, but its Cristal clear that LLP is a separate body from its partner and similar to body corporate, therefore CAs cannot form a LLP to practice.

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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28 April 2009 It will be certainly disqualified since the liablity is limited in a LLP which is not permissible.

Ankur Garg

Ankur Garg (Expert)
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03 May 2009 Agree with Mr. Nitin.

Probably CA Firms avoid registration by adopting the form of LLP.

Form of LLP attracts disqualification of section-226 for CA Firms due to the feature of Separate entity.

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