Mohit Mehta asked 3 years ago
If there are 6 partners in a firm, and all partners are indebted for 1 lakh each to a company. Then that partnership firm can do audit of that company?? As firm is not indebted, only partners are indebted that too in limit of individual partner.
1 Answers
Ravi Staff answered 3 years ago
Indebtedness limit of 5,00,000 is a aggregate limit.
That means we need to club indebtedness of CA, his Partners, Firms and Relatives all taken together should not exceed 5,00,000.
So in this particular case as in totality it is exceeding 5,00,000 CA will get disqualified he will not be able to do audit of the company.