Second schedule part 1 clause 4 case 7

Sir the case is when partner of CA is already auditor in Green World Co. Ltd and CA wants to accept the appointment as director. But in class you told that partner is director and CA wants to accept audit.
I am doubtful about the first mentioned case..please help.

3 answers

Auditguru Staff March 10, 2018

Didn’t understand your query, please elaborate


Mr. B a CA accepted the appointment as DIRECTOR of a company in which Mr. C a partner s STATUTORY AUDITOR.
Whether guilty or not and clause?

Auditguru Staff March 11, 2018

Clause 4 explains situations where CA cannot give audit opinion, that means where he should not become auditor. 
So in given case clause 4 will be applicable for “Mr C” , Mr C should not become auditor. He will also be disqualified as per company act sec 141(3)
Now lets talk about “Mr B” he will be also guilty under clause 11, ca should not become auditor in company where partner is auditor.


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