According to sec. 139 (10) existing auditor will continue to be auditor if no other auditor appointed after completion of existing auditor's tenure. While 139(2) says that after completion of tenure auditor will not hold office. Which sub section will prevail and why?
139(2) will prevail because to maintain independence of auditor act have prescribed the tenure of 5 years for individual auditor, However company may appoint an individual auditor for less 5 years (i.e. 1,2,3 or 4) also in that case he may continue if Company fails to appoint or reappoint other auditor in any AGM, but he cannot continue more than 5 years in case of individual.
139(10) No where it has mentioned expressly that existing auditor will continue to be auditor if ** NO OTHER AUDITOR APPOINTED AFTER COMPLETION OF EXISTING AUDITORS TENURE**.
@ priyanshu Paliwal yeah it's totally different that both the sections are correct, but none of it's prevail over other.... they exist independently..... sec. 139(10) applies for the companies were rotation of an auditor clause does not apply.... sec. 139(2) applies for the companies were rotation of an auditor clause applies.... but both are different....
CAclubindia
