What is the maximum number of statutory audit of private limited companies(Small Companies)/OPC can be done by a CA in a financial year.
Menu
Clarification on limit of Statutory Audit
Replies (5)
Quick Summary
Max Sixty....
Sorry,
I would like to know the limit under the Companies Act.,
Please go through the CA sec 141(3) ...
The company audit ceiling limit or restriction on the number of audits an auditor can conduct is given under Section 141(3) (g) of the Companies Act 2013.
The company audit ceiling limit or restriction on the number of audits an auditor can conduct is given under Section 141(3) (g) of the Companies Act 2013.
Sec 141 stands for number of audits. eligible of qualification of number of audits.
Two limits apply: the Companies Act and ICAI:
• Sec 141(3)(g): a CA can be auditor of up to 20 companies (excluding OPCs, dormant companies, small companies, and private companies with paid-up share capital below Rs 100 crore, per MCA Notification of 13 June 2017). So small companies and OPCs don't count towards the 20.
• ICAI guideline (Council Guidelines, 2008 and later): a member in practice shouldn't hold more than 30 audit assignments of companies in a FY (for a firm, 30 per partner). Private companies, OPCs and small companies are counted (with certain exclusions for audit of branches). Check the latest ICAI guidelines for exclusions.
• Separately, tax audits are capped at 60 per member (ICAI guideline). Some audits under other laws are excluded.
• So the practical cap for small companies/OPCs is ICAI's 30, not the Companies Act's 20.
Recent Topics :
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
- GST RATE ON FILM PRODUCTION
- Section 54
- Why are foreign investors suddenly buying Indian s
- TDS ON IMMOVABLE PROPERTY - PURCHASE FROM NRI &
- Query to Tax Garden tax consultant
- Subject: Urgent Assistance Required – TRACES
Related Topics :
CAclubindia
