Auditor u/s 139 - whether same partner can continue to sign the accounts

[CS Shainshad Aduvanni]

Dear Friends,

Section 139

2) No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint—

 

(a) an individual as auditor for more than one term of five consecutive years;

and

(b) an audit firm as auditor for more than two terms of five consecutive years:

 

Provided that—

 

(i) an individual auditor who has completed his term under clause (a) shall not be eligible for re-appointment as auditor in the same company for five years from the completion of his term;

 

(ii) an audit firm which has completed its term under clause (b), shall not be eligible for re-appointment as auditor in the same company for five years from the completion of such term:

 

Provided further that as on the date of appointment no audit firm having a common partner or partners to the other audit firm, whose tenure has expired in a company immediately preceding the financial year, shall be appointed as auditor of the same company for a period of five years:

 

Provided also that every company, existing on or before the commencement of this Act which is required to comply with provisions of this sub-section, shall comply with the requirements of this sub-section within three years from the date of commencement of this Act:

Now the Act has given 3 year term for all the Company to comply as per new Act.

My doubt is if we have Audit Firm who has been associated for more than 10 years as on 31-03-2014, whether Mr.X, partner who has signed for more than 10 years can continue to Sign the next 3 yrs or whether another partner of the Firm has to sign the accounts.

Please let me know with the rules.

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CS Shainshad Aduvanni
Company Secretary
Coimbatore

09841414439

[Indrani Sanka]

Hi,

You got to appoint an other auditor for the fy 2014-15.

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Regards,

Indrani

[periwal...@gmail.com]

Same partner may continue to sign for 3 years. After it, you will be required to appoint another auditor firm or auditor.

 

Kindly refer audit rules. It is clearly mentioned therein.

[SUDHIER KUMAR GUPTHA]

Certainly Mr.X can sign the Audit Report for next 3 years. Illustration No.2  provided under Companies (Audit and Auditors) Rules, 2014 makes it very clear.