Section 141(3)(g) companies act 2013 read with companies (au

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Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2014 According to section 141(3)(g) Companies Act 2013 read with Companies (Audit and Auditors) Rules, 2014 a person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies shall not be eligible for appointment as an auditor of a company.

In the provision neither private company nor small companies are excluded from the limit of 20. Therefore a chartered Accountant or a firm of chartered Accountant only accept audit of those companies which can pay high audit fees. In that case small companies & private companies may not be able to appoint a Auditor. In such event whether small companies & private companies will be allowed to file Balance sheet & Statement of profit & loss without Audit Report.

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