Sec141(3)

Auditing

An LLP can be appointed as auditor eventhough it is a body corporate. My question is why LLP can be appointed as auditor?is there any specific reason?

Harsha Vardhan

CA Inter

★ 2K+

13-May-21 12:13

654

Answers (2)

Body corporate cannot become the auditor of the company because of its limited liability. Even LLP has limited liability but still partners are held liable for certain wrongs. In former, they may get away with statutory responsibility under corporate veil.

Yoga Vishnu

CA Final

★ 11K+

14-May-21 11:54

In LLP at least one partner rests with unlimited liability this will safeguard the client. To protect the interest of client LLP can definitely cannot escape from the liability so it will be eligible to act as a auditor

Rapolu mahathi

CA Final

★ 17K+

14-May-21 19:48

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Sec141(3)

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