IndigoLearn

Forums

All Topics Accountancy Auditing Corporate & Other Laws Direct Taxation Indirect Taxation Financial Management Economics Costing Strategic Management Maths & Stats Exams Others AFM Financial Reporting CFA Level I

Appointment of Auditors

Corporate & Other Laws

Mr. M and Mr. N are directors of MN pvt ltd. Mr. M is also a director of ABC pvt ltd Mr. N is Partner in the Audit firm called N&O Co. Can Mr. O, who is also a partner in N&O co, appoint as a auditor of ABC Ltd? Mr. N & Mr. O are qualified CA's.

dundi Dundi

CA Inter

★ 8K+

23-Feb-24 23:56

133

Answers (4)

Best Answer

N&O co can be eligible for appointment as an auditor in ABC pvt Ltd..... Also Mr. M is common director in MN pvt ltd ..and ABC pvt Ltd ...this doesn't make even both companies related party as per AS 18

Sajeetha R

CA Final

★ 45K+

24-Feb-24 11:34

As per 141(3)(c) Mr O is not qualified

AK SPEC VIDS

CA Inter

★ 6K+

24-Feb-24 11:31

Sajeetha R

Mr. N is a KMP of ABC. How can Mr.O be appointed as an auditor of a company where his partner is a KMP ?

AK SPEC VIDS

CA Inter

★ 6K+

24-Feb-24 11:47

AK SPEC VIDS

Mr. N is a KMP of ABC. How can Mr.O be appointed as an auditor of a company where his partner is a KMP ?

N is director( kmp) of MN Ltd..not ABC pvt Ltd Where only M is KMP in MN Ltd and ABC pvt Ltd Mr. O can be appointed as an auditor because partner N is not KMP , employee , or officer in ABC pvt Ltd

Sajeetha R

CA Final

★ 45K+

24-Feb-24 12:04

IndigoLearn

We have been revolutionising learning paths for students of CA, CFA, CMA, US CMA, and ACCA since 2017 . “Learn Like Never Before” & ‘ Students-first ’ are the cornerstones of our approach. We take immense pride in having enabled 13,000 + students succeed in some of the toughest examinations in the world & are grateful to them for the love and respect they have showered us with, over the years.