Last Chance: Get 10% OFF on CAclubindia Pro Subscriptions. Subscribe Now!

Auditor of the company

373 views 2 replies

Rajat Jain

Student CA Final

29 Points Posted on 06 March 2014

Suppose, I am a practicing Chartered Accountant. I am partner is two CA firms namely Firm A and Firm B.

For a company named ABC Co. Ltd. one of my partner's in Firm A is disqualified from being appointed as an auditor vide provisions of Section 226 of The Companies Act. Henceforth I am disqualified for being an auditor from Firm A

My question is: -

Will I remain qualified if I represent Firm B?

Replies (2)

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Posted on 07 March 2014

The situation which u mentioned here is not covered by the section 226 of the comapny act hence i think u will b equalified on that way.

Rajat Jain

Student CA Final

29 Points Posted on 07 March 2014

As per Section 226 I am disqualified from acting as an auditor in Firm A, as one of the clause states "A person who is a partner of the person disqualified shall also be disqualified".

In my opinion I shall carry the criteria of disqualifications for all other firms also in which I am a partner.

Please, clarify what Professional Ethics say on this regard