Disqualification appointing auditor



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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Practicing CA

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

#CAanswers

 
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Yes, he is eligible #CAanswers
 
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Industrial Trainee at Indian Oil

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

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

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).

 
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#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.
 
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#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.
 
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Yes he can be appointed
 
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#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.

 
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