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Ceiling limit of audits

25 May 2017

As per companies act it's 20 excluding opc, dormant, etc
But as per CA act it's 30, is this 30 including the exemption of opc, dormant or excluding it?

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28 Replies

Sudhir Todkar (CS Professional) (1021 Points)
Replied 25 May 2017

One act cannot override others act. Total limit is 20 only.

Following companies shall not take into account while counting 20 which are as follows:
OPC Company
Small company
Dormant company
Other private company having paid up share capital of less than 100 Crore..

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Sana Sultana Mussu (Student) (5119 Points)
Replied 25 May 2017

yes .. right

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(Guest)

Yes
Sana ma'm is right

Hemant sahoo (Student CA Final ) (50 Points)
Replied 25 May 2017

As per companies Act 2013 maximum limit is 20 excluding opc,small co,dormant co,pvt co having paid up capital less than 100 crores.In this limit of 20 we will consider only public company plus Pvt co having paid up capital more than 100 crore.ut as per ICAI guidelines a chartered accountant can tk maximum 30 audit including Pvt.co.In this limit of 30 we will consider opc,small co, formant co, Pvt co having paid up less than 100 crores.

Hemant sahoo (Student CA Final ) (50 Points)
Replied 25 May 2017

So a chartered accountant can tk 30 audit keeping in mind limit of 20(public co + Pvt co more than 100 crore)

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Hemant sahoo (Student CA Final ) (50 Points)
Replied 25 May 2017

Basically in the limit of 20, a ca can tk only Max of 20 public co audit.
example 1) a ca can tk Max 20 audit of public co as per comanies Act
2) in the limit of 30 a ca can tk 20 audit of public co ( maximum)+ 10 (Pvt co+opc+small co+ dormant).
Hence in the limit of 30 opc , small co, dormant co is included .A ca can tk Max 30 audit by complying both companies Act 2013 n Guidelines of council (ICAI)

Sudhir Todkar (CS Professional) (1021 Points)
Replied 25 May 2017

A person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies other than one person companies ,dormant companies, small companies and private companies having paid-up share capital less than one hundred crore rupees.

It's no where expressly mentioned in companies act 2013 regarding total number of cealing limit for Auditor for public and private like (Section 165 of total number of directorship is (10+10) public max 10 and other 10 or max 20 private company.)

Please share if any notification or clarification give by MCA on this limit of Auditor.

amrith kumar (10 Points)
Replied 26 May 2017

Thank you guys

Hemant sahoo (Student CA Final ) (50 Points)
Replied 26 May 2017

Mr Sudhir todkar refer professional ethics chapter for calling limits on company audits n tax audit .we we have to consider both companies Act n chartered accountants Act simultaneously . u r mentioning no of directorship , it has no relevance with it

Sudhir Todkar (CS Professional) (1021 Points)
Replied 26 May 2017

I knew that section 165 is irrelevant with Section 141 of companies act 2013. I have given just like an expamle that in companies act 2013 its no where expressly mentioned regarding total number of cealing limit for Auditor for public and private.