Ceiling to Number of signature on balance sheet
This query is : Resolved
08 January 2010
A firm has 3 partners, so in aggregate the firm can have 90 audits. So my querry is whether 1 partner can sign all 90 Balance Sheets? If answer is negative, give the limit on "Signature" to number of Balance Sheets, and if affirmative give source.
20 January 2010
As per Section 224(1B) of the Companies Act, 1956 following points are to be taken care of:-.
 A Company or its board of directors will not appoint or reappoint any person who is in full time employment else where.
 Limit is 20 Company audits per person. (Out of which not more than 10 shall have a paid up capital of 25 lakhs or more).
 Following audits will not be counted in above limit:-
• Branch audit
• Audit of Private Companies.
• Audit of Foreign Companies.
• Special Audit u/s 233A.
• Guarantee Company not having share capital
• Bank Audits
 Following audits shall be included in above mentioned limit:
• Audit of companies u/s 25 .
• Joint Audits.
• Company limited by guarantee and having share capital.
Notification of ICAI
 Ceiling on number of audits is 30, including Private Companies, with a sub limit of 10 companies with a paid up capital of Rs. 25 lakhs or more.
 This limit of 30 Company audits is per person who is not in whole time employment.
 In computing the above number of audits even branch audit will be included but appointment should be under Section 228.
Over all combined effect of limits
 The total limit is 30.
 Within 30, the limit for Public companies is 20.
 With in limit of 20 Public companies, the sub limit in respect of public companies with paid up capital of Rs. 25 lakhs or more is 10.
 A Chartered Accountant in whole time employment cannot do any Company audit.
There is no limit as regard to the signatures, a single partner can sign any number of reports on behalf of firm.
regards,
CA Jatin Bansal
CHANDIGARH
09814622848
 A Company or its board of directors will not appoint or reappoint any person who is in full time employment else where.
 Limit is 20 Company audits per person. (Out of which not more than 10 shall have a paid up capital of 25 lakhs or more).
 Following audits will not be counted in above limit:-
• Branch audit
• Audit of Private Companies.
• Audit of Foreign Companies.
• Special Audit u/s 233A.
• Guarantee Company not having share capital
• Bank Audits
 Following audits shall be included in above mentioned limit:
• Audit of companies u/s 25 .
• Joint Audits.
• Company limited by guarantee and having share capital.
Notification of ICAI
 Ceiling on number of audits is 30, including Private Companies, with a sub limit of 10 companies with a paid up capital of Rs. 25 lakhs or more.
 This limit of 30 Company audits is per person who is not in whole time employment.
 In computing the above number of audits even branch audit will be included but appointment should be under Section 228.
Over all combined effect of limits
 The total limit is 30.
 Within 30, the limit for Public companies is 20.
 With in limit of 20 Public companies, the sub limit in respect of public companies with paid up capital of Rs. 25 lakhs or more is 10.
 A Chartered Accountant in whole time employment cannot do any Company audit.
There is no limit as regard to the signatures, a single partner can sign any number of reports on behalf of firm.
regards,
CA Jatin Bansal
CHANDIGARH
09814622848
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