Statutory audit

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CA.KN SIMHA (Querist)
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27 March 2013 Dear Experts,

Please resolve my following query

Ex Employee of the Pvt Ltd Company, Can be eligible for appointing as a Statutory Auditor for the FY 2013-14 if he resigns the employment before 31-03-2013 and what is the position if he resigns after 01-04-2013 but before appointing as an auditor.

Sambu Suresh

Sambu Suresh (Expert)
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27 March 2013 Its totally a practical question. If he resigns before 01-04-2013, and appoints as auditor for the year 2013-14. In this case at the time of appointment of as auditor he does not hold any relation ship of employee and employer. So he can be appointed as auditor.

In the law no where the prohibition on the ex employee.

However in case if he resigns after 01-04-2013 and appoints as auditor. In this case he might have bee responsible for the preparation of the accounts for the said period. So the same one should not be appointed as auditor who also responsible for the preparation of the books and issuing the auditor report.