case study

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Harshita Pahuja (Querist)
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25 January 2011 Case Study-firm name=ABC, where A, B, and C are partners. A, B, and C are chartered accountants holding certificate of practice. B is also a partner in firm XBY where X and Y are also chartered accountant holding certificate of practice. Also B does practice as a CA in his own identity. Now C purchased an equity share of reliance company. Therefore can B become an auditor of reliance company, and can firm XBY become an auditor of Reliance company ?

AMIT BHARADWAJ

AMIT BHARADWAJ (Expert)
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31 January 2011 In this ques there is the case of ceiling limit as well as disqualification u/s 226(3). In this B can take up 20 audits & 10 pvt. co audit in total as per sec. 224(1B). Here C of ABC holds the equity share of Reliance co.so if the audit of the same is given to XBY , 'B' is qualified to take up the audit of reliance as a partner of XBY without any legal problem, but he is disqualified to b an auditor of Reliance Co if the audit is given to 'ABC'