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Disqualification appointing auditor

virendra kumar (accounts) (28 Points)

15 April 2019

A CA ( holding part time COP) was working as full time employee in a pvt. company, heading finance department in 2018-19. Now after his resignation from the company in March 2019, he offered to become the Statutory Auditor of the same Co. Is he eligible for appointment as a Statutory Auditor for 2019-20 ?

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14 Replies

CA Mayur Todmal (Practicing CA) (7645 Points)
Replied 16 April 2019

Yes, he is eligible for appointment as statutory auditor of the Company

#CAanswers

Somil Pasad (4 Points)
Replied 16 April 2019

Yes, he is eligible #CAanswers

Gurpreet Singh (Industrial Trainee at Indian Oil) (27 Points)
Replied 16 April 2019

No, he has to have no pecuniary interest for past two years in dealings with that company.

#CAanswers

Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=510855

(Guest)

He is eligible. Since there is no provision about past employment. #casanswers

Sahil Bhatia (Practicing Chartered Accountant) (290 Points)
Replied 16 April 2019

Originally posted by : virendra kumar
	A CA ( holding part time COP) was working as full time employee in a pvt. company, heading finance department in 2018-19. Now after his resignation from the company in March 2019, he offered to become the Statutory Auditor of the same Co. Is he eligible for appointment as a Statutory Auditor for 2019-20 ?

#CAanswers
Eligible for appointment as the Statutory Auditor in the same company. Only the current employment falls under Section 141(3).

Kartik Charnalia (20 Points)
Replied 16 April 2019

#CAanswers , Yes CA is eligible because as per section 143(3) of the Companies Act if he has business relationship with the company ,is in full time employment elsewhere , is convicted by court , is relative of director then he is disqualified from being appointed as the statutory auditor. Crux: Yes, CA is eligible for appointment as a Statutory Auditor for 2019-20.

pooja sinha (6 Points)
Replied 16 April 2019

#CAanswer As per clause 11 of part I of Schedule 1 of CA Act 1949 a CA in practise can work in a company provided that he member/ or his relative do not hold substantial interest in such concerns after taking specific permission from ICAI. So he is eligible for employment in a co. If he resigns from that company he is also eligible to be appointed as a #StatutoryAuditor in that company provided that he does not attract sec 141(3) of companies Act 2013.

ankit (aaa) (24 Points)
Replied 16 April 2019

Yes he can be appointed

gaurav (article) (26 Points)
Replied 16 April 2019

#CAanswers Yes, he shall be eligible to become the statutory auditor. As per code of ethics as issued by the ICAI, it is not permissible for a member who has been Director of a Company, upon resignation from the Company to be appointed as an auditor of the said Company, and the cooling period for the same may be 2 years. However, in the above given case, he is head of finance department & not a director. Thus, he shall be eligible to become statutory auditor.

virendra kumar (accounts) (28 Points)
Replied 16 April 2019

Thank you vary much all of you

in this case -((A CA ( holding part time COP) was working as full time employee in a pvt. company, heading finance department in 2018-19. Now after his resignation from the company in March 2019, he offered to become the Statutory Auditor of the same Co. Is he eligible for appointment as a Statutory Auditor for 2019-20 ? ))

Can he also sign Financial statement s of F.Y. 2018-19 because BS will be signed in current date and he is not in employment of that company from 25-03-2019

Aman Kumar (12th pass) (22 Points)
Replied 16 April 2019

Yes he is elegible to be appointed as statutory auditor of the said company as Section 141 states that only the qualified person who is in employment with an entity is not eligible to be appointed as an auditor