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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Disqualification appointing auditor
Replies (14)
Yes, he is eligible for appointment as statutory auditor of the Company
#CAanswers
Yes, he is eligible
#CAanswers
No, he has to have no pecuniary interest for past two years in dealings with that company.
| Originally posted by : virendra kumar | ||
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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).
#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.
#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.
Yes he can be appointed
#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.
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
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
Yes he can sign the financials as the auditor
| Originally posted by : CA MAYUR TODMAL | ||
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Yes, he is eligible for appointment as statutory auditor of the Company #CAanswers |
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u can see in icai
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