Abhishek Jain (Manager-Finance) (64 Points)
20 October 2021Hi All
Please advise
A private company appointed statutory auditor for a term of 3 years then reappointed him again for another period of 3 years
Can the firm again be reappointed for period of 3 years. As total period is less than 10 years
Thanks in advance
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 20 October 2021
CA Amrita Chattopadhyay
(Audit & Assurance)
(13459 Points)
Replied 05 November 2021
As per section 139 of the Companies Act, a sole proprietor can be appointed for a term of 5 years and a partnership firm for a period of 10 years. However, there has to be rotation of partner after 5 years.
In the stated case, the firm can be further appointed for 3 years as it is less than 10 years. However, there has to be rotation of partners.
CAclubindia
