CASE STUDY
This query is : Resolved
02 July 2010
THERE R 4 PARTNRES ALL R CA $ HVING COP BUT 3 R FRM INSTITUTE OF INDIA $ 1 IS FRM INSTITUTE OF AUSTRALIA AND HVING COP OF AUSTRALIA. CAN A COMPANY APPOINT THEIR FIRM AS AUDITOR? ITS URGENT PLZ ANSWER
02 July 2010
In case of an Indian Company, the person eligible to be appointed as an auditor is defined as follows >
In this section, "accountant" means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State.
Section 226 of Companies Act says, about the Qualification of the Auditors as folllows >
1) A person shall not be qualified for appointment as auditor of a company unless he is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of. 1949):
Provided that a firm whereof all the partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company, in which case any partner so practising may act in the name of the firm.
(2) (a) Notwithstanding anything contained in sub-section (1) but subject to the provisions of any rules made under clause (b), the holder of a certificate granted under a law in force in the whole or any portion of a Part B State immediately before the commencement of the Part B States (Laws) Act, 1951 (3 of 1951) 1[or of the Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956) as the case may be,] entitling him to act as an auditor of companies 2[in the territories which, immediately before the 1st November, 1956, were comprised in that State] or any portion thereof, shall be entitled to be appointed to act as an auditor of companies registered anywhere in 3[mdia].
(b) The Central Government may, by notification in the Official Gazette, make rules providing for the grant, renewal, suspension or cancellation of auditors certificates to persons in 4[the territories which, immediately before the 1st November, 1956, were comprised in Part B States] for the purposes of clause (a), and prescribing conditions and restrictions for such grant, renewal, suspension or cancellation.
In view of the above provisons, if the 4th Partner is also holding COP from ICAI, then only the firm can be appointed a auditor.
In this section, "accountant" means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State.
Section 226 of Companies Act says, about the Qualification of the Auditors as folllows >
1) A person shall not be qualified for appointment as auditor of a company unless he is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of. 1949):
Provided that a firm whereof all the partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company, in which case any partner so practising may act in the name of the firm.
(2) (a) Notwithstanding anything contained in sub-section (1) but subject to the provisions of any rules made under clause (b), the holder of a certificate granted under a law in force in the whole or any portion of a Part B State immediately before the commencement of the Part B States (Laws) Act, 1951 (3 of 1951) 1[or of the Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956) as the case may be,] entitling him to act as an auditor of companies 2[in the territories which, immediately before the 1st November, 1956, were comprised in that State] or any portion thereof, shall be entitled to be appointed to act as an auditor of companies registered anywhere in 3[mdia].
(b) The Central Government may, by notification in the Official Gazette, make rules providing for the grant, renewal, suspension or cancellation of auditors certificates to persons in 4[the territories which, immediately before the 1st November, 1956, were comprised in Part B States] for the purposes of clause (a), and prescribing conditions and restrictions for such grant, renewal, suspension or cancellation.
In view of the above provisons, if the 4th Partner is also holding COP from ICAI, then only the firm can be appointed a auditor.
02 July 2010
it means that this firm cant b auditor of any company?
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