13th September 2011
Dear Members
At the AGM held on 29.09.2010, a private company had re-appointed M/s.Abba & Co., Chartered Accountants, as their statutory auditors. M/s.Abba & Co is a proprietorship concern. Name of the Proprietor is Mr.Abba. Earlier the audit reports and accounts used to be signed by the above auditor(s) as follows:
for ABBA & Co.,
Chartered Accountants
Firm Regn. No._____________
S. ABBA
PROPRIETOR
Membership No,______________
The said proprietorship concern has now been converted into a partnership firm. M/s.Abba & Co had informed the company about the change in their status. The PAN of the firm has been changed. However there is no change in the registration number of the firm issued by CA Institute.
The resolutions passed at the AGM held on 29.09.2010 had appointed only M/s.ABBA & Co., Chartered Accountants as auditors. Form 23B filed with ROC also contains the name of the Audit Firm as M/s.ABBA & Co.,
My query in this connection is
Ø Whether the company is required to take any action due to change of status of the audit firm from proprietorship to partnership.
Ø Whether this change in status amounts to change of auditors leading to casual vacancy.
Ø Whether the appointment of M/s.Abba & Co., (Partnership firm) has to be approved by the Board of Directors at a board meeting.
Ø Whether above issues needs to be reported in the Directors Report of current year.
Ø What are the steps that are need to be taken by the company in compliance with Cos. Act.
Looking forward for your advise and help.
With regards
R. Muralidharan
CAclubindia
