Audit Experts please Reply

manoj (student) (5205 Points)
Replied 04 July 2010

1 and 2 yes

3,4 and 5th no

Arpit Sharma (CA Final & CWA Final Student) (231 Points)
Replied 04 July 2010

Dear Friend Manoj

Please Justify your answer

Arpit Sharma

CA SHABIR (CA) (336 Points)
Replied 05 July 2010

Kind attention Mr. Sharma

1) Suppose there is a CA firm having 4 partners, out of which 3 having COP but 1 not having COP then can a Public Ltd Company can appoint such firm as an auditor.

Ans : All CA firms practicing in India need to get themselves registered with ICAI, before they start practice. For this all the partners need to have COP. Hence a firm with 4 partners, out of which 1 does not posses COP is not authorised to practice under the banner of the firm.

2) Suppose there is a CA firm having 4 partners, out of which1 partner is practising in Australia than can a Public Ltd Company appoint such firm as an auditor.

Ans : Yes, the only requirement is that the partner, working in Australlia, must posses necessary qualification & COP.

3) Suppose there is a Firm having 4 partners, out of which1 partner is MBA giving consultancy services to clients of the firm & other 3 partners are CA than can a Public Ltd Company appoint such firm as an auditor.

Ans : No. CAs & MBAs are not authorised to form a partnership firm.

4) In the 3rd Point what will be the answer if the partner having MBA qualification is practicing in australia and other 3 CA partners are practicing in India

Ans : No. CAs & MBAs are not authorised to form a partnership firm.

5) Suppose Mr X is a CA (with COP) having one preference share of ABC Ltd, than can ABC Ltd appoint Mr. X as an auditor of the company.

Ans : No, he is holding security of the company.

Note : Answers, given above, are my own views only.

Nitin Grover (CS) (1228 Points)
Replied 05 July 2010

Agree with above answer.

Bala (Student) (498 Points)
Replied 05 July 2010

In my view, Mr. Shabir is correct

Arpit Sharma (CA Final & CWA Final Student) (231 Points)
Replied 05 July 2010

Thanks a lot Shabir Sir

But i still have one doubt regarding point no. 5, as per section 226 the security should not be the one by which a person gets voting power in the company
, and as per my knowledge generally preference share does not give voting power, so why a public limited company cant appoint a CA as an auditor having preference shares in the said company

Arpit Sharma