Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Company audit simple doubts

Rahul (Chartered Accountnat CS) (1580 Points)

05 October 2011

1 Filing of Casual vacancy - Does dissolution of firm which is engaged in audit of X ltd leads to casual vacancy

2 Special Audit- If a person is disqualified under section 226 like he is a shareholder/ indebted to co. etc , can he be appointed as special auditor u/s 233A

Reply
Follow
Share

5 Replies

CA Sumiit B Nagpal (Business) (1077 Points)
Replied 05 October 2011

Originally posted by : Rahul
	1 Filing of Casual vacancy - Does dissolution of firm which is engaged in audit of X ltd leads to casual vacancy 2 Special Audit- If an person is disqualified under section 226 like he is a shareholder/ indebted to co. etc , can he be appointed as special auditor u/s 233A

regarding your 1st query, in my opinion yes, dissolution of firm leads to casualy vacancy in the office of auditor

regarding your 2nd query, i think he cant be appointed as special auditor,.although it is not mentioned in Section 233A, but it will hamper independence of auditor, So if u will do a combined reading of Section 226 and 233A and also of Guidance note on independence of auditor, person disqualified under section 226 can not be appointed as special auditor u/s 233A

Wait for other replies also

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Anshu Garg (working) (139 Points)
Replied 05 October 2011

1st query - yes, dissolution of firm leads to casual vacancy. 2nd- no, a disqualied auditor u/s 226 cannot be appointed as a company auditor in any circumstances i.e. he cann't be appointed u/s 233a as special auditor.

1 Like

Rahul (Chartered Accountnat CS) (1580 Points)
Replied 05 October 2011

Originally posted by : Anshu Garg
	1st query - yes, dissolution of firm leads to casual vacancy. 2nd- no, a disqualied auditor u/s 226 cannot be appointed as a company auditor in any circumstances i.e. he cann't be appointed u/s 233a as special auditor.

But there is nothing mentioned about the 2nd answer in Companies act 1956. Can u please provide me reference for your 2nd answer

Anshu Garg (working) (139 Points)
Replied 10 October 2011

reading of section 233a and 226 confirm that an auditor does audit independently and if he is disqualified then it will influence his independence so read the section 233a and 226

naresh (Jr.Asst) (22 Points)
Replied 08 November 2011

My friend paid Rs.6.00 Lakhs to Municipality through a Demand Draft for a permission. But his actual fee is Rs.2.00 Lakhs only. He went to Municipality and requested to Return the Rs.6.00 Lakhs Demand Draft which was not adjusted into Municipal Account.

Can he get back the Rs.6.00 Lakhs demand draft (which was not adjusted into Municipal Account) after payment of actual fee Rs.2.00 Lakhs