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Disqualification of auditors u/s 141- 141(3)(i)

Sunish (Freelance) (168 Points)

26 August 2015

Dear friends.

I have an issue in understanding the last clause of this section, the clause begins by saying "any person whose subsidiary or associate or any other form of entity, is engaged as on the date of appointment in consulting and specialised services as provided in sec144"

Q- How can a person have a subsidiary or associate?

Q-Who is providing to whom the specialised services as provided in 144?

Regards

CA aspirant

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KANNAN (Subject Matter Expert) (382 Points)
Replied 15 September 2015

I have got the same doubt. Have you got clarified. If yes please update me with the clarification. I am somewhat clarified when I read sec 144. I am updating that portion of sec 144 below

It is also provided in this section that the prohibited non-audit services cannot be rendered by the following associates of the auditor.

i) If the auditor is an Individual :- The Individual himself or his relative or any person connected or associated with him, or any entity in which the Individual has significant influence or control or whose name or trade mark/brand is used by the Individual.

ii) If the auditor is a firm or LLP:- Such firm/LLP either itself or through its partner or through its parent, subsidiary or associate or through any entity in which the firm/LLP or its partner has significant influence or control or whose name, trade mark or brand is used by the firm/LLP or any of its partners.

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