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Appointment of auditor

Shalu Gupta (Mumbai) (33 Points)

24 April 2014

There is a company named XYZ pvt Ltd. ABC is a CA partnership firm. Director of the company is Narayan. Partners of CA firm are Ram & Rohit. Narayan is the brother of Ram. Can Rohit sign the audit report of XYZ PVT LTD????

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2 Replies

Yogesh Shukla (Tax Practitioner) (712 Points)
Replied 24 April 2014

Your clarifiction can be answered in two: Firstly, A practicing Chartered Accountant can only be eligible to attest the Tax and VAT audit report. Secondly, to be unbiased while attesting any function related to accounting, auditing etc., the 'independence', one of the basic principle governing an audit should be carefully looked into. In this respect Chartered Accountants Act, 1949 will come into play an objectional role.