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Auditor under companies act, 2013

Saeed Khan (7 Points)

26 September 2017

can a CS appointed as an external audior as per companies act, 2013?

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9 Replies

Aditya Tibrewal (Student) (25 Points)
Replied 26 September 2017

No. As per section 141 (1) only a chartered accountant with certificate of practice from ICAI can be appointed as External/Statutory Auditor of a company.

Saeed Khan (7 Points)
Replied 26 September 2017

okay thank you

Shrijay Sheth (Co-Founder) (2692 Points)
Replied 27 September 2017

Section 41(1) of the companies Act, 2013 provides that eligibility of a person being appointed in the Company as Statutory Auditor (i.e. External Auditor) only if he is a Chartered Accountant and having Certificate of Practice issued from ICAI. Also, a firm whereof majority of partners practising in India approved by ICAI are qualified for appointment and the same may be appointed under their firm name or as individual in the Company as Statutory Auditor. In case, the statutory auditor is being appointed in the firm’s name, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm. A Company Secretary can be appointed as a Secretarial Auditor (i.e. Compliance Auditor) in the Company.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 28 September 2017

Originally posted by : Aditya Tibrewal
	No. As per section 141 (1) only a chartered accountant with certificate of practice from ICAI can be appointed as External/Statutory Auditor of a company.

Shrijay Sheth (Co-Founder) (2692 Points)
Replied 28 September 2017

Originally posted by : CS Ankur Srivastava
	Originally posted by : Aditya Tibrewal No. As per section 141 (1) only a chartered accountant with certificate of practice from ICAI can be appointed as External/Statutory Auditor of a company.

Thanks

Aniket Dhumale (4 Points)
Replied 04 October 2017

can a CMA appointed as a statutory auditor

Aniket Dhumale (4 Points)
Replied 04 October 2017

can a Chartered accountant appointed as a cost auditor

Shrijay Sheth (Co-Founder) (2692 Points)
Replied 04 October 2017

Originally posted by : Aniket Dhumale
	can a CMA appointed as a statutory auditor

Section 141(1) of the companies Act, 2013 provides that eligibility of a person being appointed in the Company as Statutory Auditor (i.e. External Auditor) only if he is a Chartered Accountant. Also, a firm whereof majority of partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company. Here, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm.

A Company Secretary can be appointed as a Secretarial Auditor (i.e. Compliance Auditor) in the Company whereas a Cost Accountant or CMA can be appointed as Cost Auditor, if required or mandated.

Shrijay Sheth (Co-Founder) (2692 Points)
Replied 04 October 2017

Originally posted by : Aniket Dhumale
	can a Chartered accountant appointed as a cost auditor

section 148(3) expressly provides that Cost Audit in a Company shall be conducted by a Cost Accountant in practice. Hence, neither a Chartered Accountant or Comapny Secretary can conduct Cost Audit in a Company.

The appointment of the Cost Accountant is required to be made by the Board of the Company.