Darshil Shah (Job) (54 Points)
11 February 2009In the Following case whether Partnership firm can be appointed as the auditor of the company ?
ABC Ltd. is the auditee company
AB & Co. is a firm of Chartered Accountants consisting of two partners Mr. A & Mr. B
Mr. A & Mr. B are personally indebted to ABC Ltd. for an amount of Rs. 600/- per partner.
Wheher the partnership firm can be appointed as the auditor of ABC Ltd on the ground of the Partnership Firm is not disqualified & not indebted to ABC Ltd. for an amount exceeding Rs. 1000/-
Dinesh
(Auditor)
(66 Points)
Replied 28 February 2009
as per my view point.....no... it cannot be appointed.
Rahul Gupta
(CA Final Student)
(1780 Points)
Replied 02 March 2009
Hello friends
As per Sec 226 of companies act 1956, when any partner of a firm is indebted to the company for an amount exceeding Rs.1000 then the firm becomes disqualified from being appointed as an auditor and vice-versa.
Regards
Rahul Gupta.
CAclubindia
