Audit Experts please Reply

1 and 2 yes

3,4 and 5th no

Dear Friend Manoj

Please Justify your answer

Arpit Sharma

Kind attention Mr. Sharma

1) Suppose there is a CA firm having 4 partners, out of which 3 having COP but 1 not having COP then can a Public Ltd Company can appoint such firm as an auditor.

 Ans : All CA firms practicing in India need to get themselves registered with ICAI, before they start practice. For this all the partners need to have COP. Hence a firm with 4 partners, out of which 1 does not posses COP is not authorised to practice under the banner of the firm.

2) Suppose there is a CA firm having 4 partners, out of which1 partner is practising in Australia than can a Public Ltd Company appoint such firm as an auditor.

 Ans : Yes, the only requirement is that the partner, working in Australlia, must posses necessary qualification & COP. 

3) Suppose there is a Firm having 4 partners, out of which1 partner is MBA giving consultancy services to clients of the firm & other 3 partners are CA than can a Public Ltd Company appoint such firm as an auditor.

Ans : No. CAs & MBAs are not authorised to form a partnership firm. 

4) In the 3rd Point what will be the answer if the partner having MBA qualification is practicing in australia and other 3 CA partners are practicing in India

 Ans : No. CAs & MBAs are not authorised to form a partnership firm.

5) Suppose Mr X is a CA  (with COP)  having  one preference share of ABC Ltd, than can ABC Ltd appoint Mr. X as an auditor of the company.

Ans : No, he is holding security of the company.

Note : Answers, given above, are my own views only.

Agree with above answer.

In my view, Mr. Shabir is correct

Thanks a lot Shabir Sir

But i still have one doubt regarding point no. 5, as per section 226 the security should not be the one by which a person gets voting power in the company
, and as per my knowledge generally preference share does not give voting power, so why a public limited company cant appoint a CA as an auditor having preference shares in the said company

Arpit Sharma

You are right Arpit

It may be for the purpose of independence of the auditor..