13 July 2014
can anybody explain why body corporates are not allowed to appoint as auditor of a company ? what is the reason behind this ? even though llp is a body corporate why they allowed to appoint llp as auditor of a company?
13 July 2014
1. ICAI act itself doesn't allow practicing CAs to have a corporatised body. So if the ICAI itself if not allowing corportization of the CA firms, Companies Act cannot allow the audit by a corporatized body as such a body wont hold the license to do the audit in the first place
2. LLPs were allowed only after Govt decided to treat LLPs as partnerships only for the purpose of CA/CS/ICWAs
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