In the Following case whether Partnership firm can be appointed as the auditor of the company ?
ABC Ltd. is the auditee company
AB & Co. is a firm of Chartered Accountants consisting of two partners Mr. A & Mr. B
Mr. A & Mr. B are personally indebted to ABC Ltd. for an amount of Rs. 600/- per partner.
Wheher the partnership firm can be appointed as the auditor of ABC Ltd on the ground of the Partnership Firm is not disqualified & not indebted to ABC Ltd. for an amount exceeding Rs. 1000/-
as per my view point.....no... it cannot be appointed.
Hello friends
As per Sec 226 of companies act 1956, when any partner of a firm is indebted to the company for an amount exceeding Rs.1000 then the firm becomes disqualified from being appointed as an auditor and vice-versa.
Regards
Rahul Gupta.
R P S K & Associates
Nashik
CA Inter
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