Celling limit of audit of pvt company

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Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2015 AFTER MCA notification now how many audit of pvt company a CA can do if pvt co share capital is less than precribed by MCA
as per ICAI is 30

CMA MALHAR BEHERA

CMA MALHAR BEHERA (Expert)
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09 June 2015 MCA has vide Notification dated 05/06/2015 has exempted from Statutory Audit ceiling limit of 20 company audit limit the following Companies :-
a) other than one person companies
b) dormant companies,
c) small companies and private companies having paid-up share capital less than one hundred crore rupees.

So now the Limit of 20 Companies includes:-
a) Public Companies
b) Private Companies having paid up capital of Rs. 100 crore or more

Revised Clause (g) of Section 141 of Companies Act is as follows :-
g)a person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies other than one person companies ,dormant companies, small companies and private companies having paid-up share capital less than one hundred crore rupees.

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 Mahlhar sir,then what is the limit for statutory audit it is 30 as per ICAI and as per co act 2013 there is no li

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Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 Mahlhar sir,then what is the limit for statutory audit it is 30 as per ICAI and as per co act 2013 there is no li

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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18 July 2024 As per the current regulations and guidelines for Chartered Accountants in India, the limit for statutory audits of private companies below a certain turnover threshold is governed by the Companies Act, 2013. Here’s a clear breakdown:

### Statutory Audit Limitations:

1. **Companies Act, 2013**:
- For private companies:
- A Chartered Accountant (CA) can undertake the statutory audit of up to **20 private companies** in a financial year if their turnover is less than Rs. 1 crore.

2. **ICAI Guidelines**:
- The Institute of Chartered Accountants of India (ICAI) does not specify a limit of 30 statutory audits specifically under its regulations. The ICAI guidelines align with the Companies Act, 2013, which sets the limit at 20 private companies for statutory audits.

### Clarification:

- **Companies Act, 2013**: This is the primary legislation governing corporate affairs in India, including the audit requirements for companies. It explicitly states that a CA can conduct statutory audits for up to 20 private companies with turnover below Rs. 1 crore per financial year.

- **ICAI**: The ICAI, being the regulatory body for CAs in India, provides guidelines and regulations that CAs must adhere to. These guidelines are generally aligned with the provisions of the Companies Act, 2013.

### Practical Application:

- When undertaking audits, CAs need to ensure compliance with both the statutory limits specified in the Companies Act, 2013, and any additional guidelines or requirements set forth by the ICAI. This ensures proper adherence to regulatory norms and ethical standards within the profession.

- It’s crucial for CAs to maintain accurate records and ensure they do not exceed the specified limits to avoid potential penalties or disciplinary actions.

In conclusion, under the current legal framework in India, the limit for statutory audits of private companies by a CA is 20 per financial year, as specified by the Companies Act, 2013.