Fakruddin asked 4 years ago
An individual(Ajay) who completed his term of 5 years for Xyz Ltd as an auditor..
Later ABC firm was appointed as auditor amd 2 yrs completed..Ajay joined them as partner does it lead to Disqualification for Firm to continue as auditors for next 3 years? Or it can continue?
Ravi Staff answered 4 years ago
There is no clarity about this, i am giving my opinion
Ajay (Proprietor) is under cooling period
if he shuts down his proprietorship firm and joins any partnership then he become signing person who was incharge to join partnership firm, partnership firm will also go in cooling
if he doesnt shut his proprietorship firm and join any partnership then it becomes common partner situation and in common partner situation we have to check it only at the time of appointment, as person is joining after appointment no problem at all