Ceilig of audit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2011 As per companies act the ceiling of audit is 20 companies per person.As per council its 30 companies. Then what are the students supposed to answer if related question is asked as per any case law?as per companies Act or as per the c.a council?

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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21 August 2011 You can answer both of them.

Write the limit as per companies act and as per the council both.

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2011 alright...thanks

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CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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21 August 2011 I need to clarify further on the matter

If there is two(2) provision/laws in two(2) different acts/Rules/Regulation then one should work out in a way that no laws is break.

PROVISION REGARDING AUDIT CEILING LIMIT ARE AS UNDER:

U/s 224(1B) of Co. Act:
- Public Co: Max. 20 No's
- Pvt. Co : No Limit

As per ICAI Guidelines:
- Public Co & Pvt. Co : Max. 30 No's

Interpretation:
So a CA can do maximum of 30 Co audits (out of which max. 20 can be of public Co)

or he can also do audit of 30 Pvt Co.

Hope the query is resolved.

Now Cheers

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2011 k so it means both laws in combination has to be followed. And even if some1 follows companies act as per icai he can take maximum 30 pvt companies only for audit.
thanks...this answer was a great help to me

Querist : Anonymous

Querist : Anonymous (Querist)

21 August 2011 For the above purpose, the “specified number of audit assignments” means –
a. in the case of a Chartered Accountant in practice or a proprietary firm of
Chartered Accountant, thirty audit assignments whether in respect of private
Companies or other Companies.
b. in the case of Chartered Accountants in practice, thirty audit assignments per
partner in the firm, whether in respect of private Companies or other
Companies.
Provided that out of such “specified number of audit assignments, the
number of audit assignments of public Companies each of which has a paidup
share capital of rupees twenty-five lakhs or more, shall not exceed ten.

these are the eact wordings in the act..thn a partner can accept more than 20 public ltd companies also accordin to the council bt it wil contradict the companies Act

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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24 August 2011 Companies Act said about max audit of 20 PUBLIC CO.& there is no limit for PVT. CO.

But as per ICAI Guidelines a practicing member can do audit of max 30 Co Audit (Incl. Pvt Co too)

So it means the option is as follows:
1. Do max. 30 Pvt Co Audit OR
2. Do max. 20 Public Co. Audit & 10 Pvt. Co.
Audit.

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2011 thank u very much

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