liability of a ca firm

what is the liability of a ca firm, in case of audit & sign by a partner of the audit firm?

Replies (8)

The firm is liable through his partners only and the partners will be held of guilty and accordingly penalized.

is dis mean dat d partner whu is signing d balance sheet will only be held liable and not d other partners of the CA firm?

No its not the case. For every audit, the partner who is considering the audit is the main incharge. However, if any wrong thing is done by that partner, then he is liable to the firm i.e the other partners.

Regarding, CA Misconduct, the Partner who is the main auditor in the wrong doing, is held to be guilty of misconduct along with the other consented partners to the act, and ICAI can levy penalties on firm as well as on the partners

Further, in case any penalty is levied on the firm because of the wrong doing, then the guilty partners are liable to compensate the loss to the firm as per the partnership deed.

In Nut shell, every partner who is aware of the wrong doing and has asserted to it, will be held liable as guilty.

.

As we hv studied the liability of firms is unlimited.  Firstly the partner will be held guilty and if any recovery is to be done, it will be recovered frm him but if he is not able to repay this obligations, the recovery can be made from other partners too...... Its not d case of company where the liability is limited to the extent of unpaid share capital......dats y now a days, a new concept of Limited liability concept where liability is limited and rules and regulations are not so strict......as in case of company....

okkk thnx guys.....nd miss deepika are u talking abt d principal agent relationship in a partnership

no.....i m not talking about the principal agent relationship....i am talking about the limited liability partnership ....its new form to create the organisation just like company or firm.   Limited Liability Partnership includes the features of the both company and firm.  For further details you can refer this link.....www.llp.gov.in

okkk thnx guys.....

if a C.A. firm has signed the bank audit and if some wrong thing has been done and RBI has stopped the working of Bank. later on RBI has filed the criminal case against all the bank officials including against signing Partner/auditor of the bank. in this case all the major decisions has been taken by signing partner and other partner has done only routine audit/checking like the other staff of the audit firm. in this criminal case other partner of the firm is how much liabile/responsible .

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 September 2026
Work at home

Lottery.sambad.tv

Bhopal

Others

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details