rakshit lodha asked 3 years ago
We see common partner on date of appointment then what will happen if a auditor who completed his term and joins other audit firm during the period and not on date of appt of other auditor ?
1 Answers
Ravi Staff answered 3 years ago
If there is a common partner situation on the date of appointment—Then firm will be ineligible.
If Common partner situation arises, after date of appointment— Firm is eligible.
Law Feels that, if this situation is arising after appointment then there is no intention to bypass rotation, it is just a coincidence. Yes this Loophole can be used by people to bypass rotation.