Can Company be partner of CA Firm

The basic idea behind not allowing a company to be partner in a firm is that in a company, the liabilty of the members is limited. Hence, a company cannot practice as Auditor, whereas the liability of partners in a partnership firm (Not LLP) is unlimited. Hence, a partnership firm can be appointed in Firm's Name.

Hence, though a company can be a partner in a LLP, An LLP cannot essentially be appointed as an auditor in the firm's name. Thus, LLP & Company both cannot be appointed and hence, cannot be partners in a CA partnership firm for the purpose of Audit.

Originally posted by : s
	Hence, though a company can be a partner in a LLP, An LLP cannot essentially be appointed as an auditor in the firm's name. Thus, LLP & Company both cannot be appointed and hence, cannot be partners in a CA partnership firm for the purpose of Audit.

The basic idea behind passing LLP Act & proposing the companies bill 2009 was to enable LLPs to carry audit and enable various professionals (CA, CS, CWA, LLB) to set up firms together so i dont understand your premise that LLP cant be appointed as auditor (after Companies bill 2009 is passed)

Could u state the relevant provisions on which u r basing your opinion 

My contention is that the Act requires only a firm of Chartered Accountants wherein all partners practising in India or a CHartered Accountant practising in India [u/s 226(1)] can only to be appointed as the Stat. Auditors.

If a company is a partner of an Audit Firm, how will it justify that all the members are practising as the Law forbids a Body Corporate from being an Auditor u/s 226(3)