Maximum audit limit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 August 2012
Can any body tell me about the maximum Audit limit as per companies act it is 20 ltd companies excluding pvt company but my confusion is about the limit imposed on Audits by ICAI.Is non complaince of ICAI limits amounts to professional misconduct.The limit for Tax Audit is seperate or will be included in the above.
04 August 2012
The tax audit limit is 45 irrespective of status of assessee.
The non compliance of limit imposed by institute is professional misconduct.
The non compliance of limit imposed by institute is professional misconduct.
05 August 2012
Hi
As per section 224(1B) of the Companies Act, 1956, maximum number to which an auditor can audit is here under:
The expression 'specified number' means—
(i) in the case of a person or firm holding appointment as auditor of a number of companies each of which has a paid-up share capital of less than rupees twenty-five lakhs, twenty such companies;
(ii) in any other case, twenty companies, out of which not more than ten shall be companies each of which has a paid-up share capital of rupees twenty-five lakhs or more.
In computing the specified number of companies in respect of which or any part of which any person or firm has been appointed as an auditor, whether singly or in combination with any other person or firm, shall be taken into account in computing the specified number as defined in Explanation I of section 224(1C).
The following types of companies shall be excluded from reckoning specified limits, in terms of share capital:—
(a) Guarantee companies (Department's Letter No. 8/12/(224)/74-CL-V, dated 28-9-1974)
(b) Foreign companies (Circular No. 21 of TSF No. 35/3/75-CL-III, dated 24-9-1975)
As mentioned above, as per the Companies (Amendment) Act, 2000 private companies will not be taken into account for counting the 20 number of companies audit as specified as per sub-section (1B) of
section 224.
As per section 224(1B) of the Companies Act, 1956, maximum number to which an auditor can audit is here under:
The expression 'specified number' means—
(i) in the case of a person or firm holding appointment as auditor of a number of companies each of which has a paid-up share capital of less than rupees twenty-five lakhs, twenty such companies;
(ii) in any other case, twenty companies, out of which not more than ten shall be companies each of which has a paid-up share capital of rupees twenty-five lakhs or more.
In computing the specified number of companies in respect of which or any part of which any person or firm has been appointed as an auditor, whether singly or in combination with any other person or firm, shall be taken into account in computing the specified number as defined in Explanation I of section 224(1C).
The following types of companies shall be excluded from reckoning specified limits, in terms of share capital:—
(a) Guarantee companies (Department's Letter No. 8/12/(224)/74-CL-V, dated 28-9-1974)
(b) Foreign companies (Circular No. 21 of TSF No. 35/3/75-CL-III, dated 24-9-1975)
As mentioned above, as per the Companies (Amendment) Act, 2000 private companies will not be taken into account for counting the 20 number of companies audit as specified as per sub-section (1B) of
section 224.
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