yesterday one of my friend posted this on some another app:
"Rotation of auditors i have doubt
If A Ltd. appoints a partnership firm "X" as an auditor for consecutive 9 years & removes it for 10th year & appoints another different firm "Y"as an auditor for 10th year
Then can that partnership firm "X"be appointed in the A Ltd. for 11th year again as an auditor ?"
WHATS YOUR ANSWER FOR THIS?
IF YOUR ANSWER IS NO THAN YOU MUST READ THIS POST TO CLEAR YOUR MISCONCEPTION
THE ACTUAL ANSWER TO THIS QUESTION IS YES....... IF YOU WILL READ SECTION 139(2) IT CLEARLY SAYS THAT COOLING PERIOD IS ONLY APPLICABLE IF TYE AUDITOR HAS COMPLEATED HIS TERM(1term of 5 consecutive years for individual and 2 terms for audit firm)
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AUDITING MISCONCEPTION--- ROTATION AND COOLING PERIOD
Replies (3)
break in the term for a continuous period of five years shall be considered as fulfilling the requirement of rotation
(Explanation II of Rule 6 of Companies (Audit and Auditors) Rules, 2014)
this is what I was trying to explain...... but I don't know how to attach a photograph here.....
Firm X is not eligible for auditor of that company for 5 years... When an auditor is rotated in the middle of term it is deemed that he complete his term...
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