02 May 2016
Statutory Audit can be done by a Chartered Accountant who has obtain Certificate of practice from ICAI. ICAI has further allowed PCA to do practice either individually or with other PCAs in a Firm. Body Corporate is not allowed to do audit probably because Body Corporate is separate and distinct entity.
05 May 2016
Sir, u mean to say that since Company has a separate legal entity & Auditors cant be held personally liable for any misconduct. But in that the same can get fall in situation of lifting of Corporate veil. Then what is the problem??
05 May 2016
If you see the law of all the Professional (e.g. CA, CS, Lawyer, Architect etc.), they all can not do practice as a Body Corporate. They have to be a individual or firm. There has to be some reason. I am not sure what is the intention behind this. These restrictions are incorporated in the Act passed by Parliament of India. May I know, why do you want to know the reason behind it?
CAclubindia
