Eligibilty letter from auditors
This query is : Resolved
12 October 2011
Hi,
Please let me know if a private limited company also have to get eligibilty letter from the auditors appointed. As per the fourth proviso added to sub-section (1B) by the Companies (Amendment) Act, 2000, private companies have been excluded from the existing ceiling of 20 audits per partner and sub-ceiling of 10 audits for companies having a paid up capital of Rs. 25 Lacs or more. Thus, apart from 20 audits of public companies, an auditor may conduct audit of private companies without any ceiling. But the Section 224 says clearly that all companies need to get the eligibilty letter, whether private companies also need to get?
Please let me know if a private limited company also have to get eligibilty letter from the auditors appointed. As per the fourth proviso added to sub-section (1B) by the Companies (Amendment) Act, 2000, private companies have been excluded from the existing ceiling of 20 audits per partner and sub-ceiling of 10 audits for companies having a paid up capital of Rs. 25 Lacs or more. Thus, apart from 20 audits of public companies, an auditor may conduct audit of private companies without any ceiling. But the Section 224 says clearly that all companies need to get the eligibilty letter, whether private companies also need to get?
12 October 2011
Yes, the eligibility letter takes care of several disqualifications.
An auditor may be disqualified not only on account of ceiling on number of audits but may also be disqualified on account of several other factors.
Hence an eligibility letter is must and mandatory.
An auditor may be disqualified not only on account of ceiling on number of audits but may also be disqualified on account of several other factors.
Hence an eligibility letter is must and mandatory.
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