Sec 139(2)says no audit firm having a common partner to the other Audit firm whwhose tenure has expired in a company shall be reappointed for 5yrs. But if Auditor of the company was a sole proprietor and he is also a partner in other firm can that firm be appointed as Auditor

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Sec 139(2)says no audit firm having a common partner to the other Audit firm whwhose tenure has expired in a company shall be reappointed for 5yrs. But if Auditor of the company was a sole proprietor and he is also a partner in other firm can that firm be appointed as Auditor

Questions › Category: Co. Audit - I › Sec 139(2)says no audit firm having a common partner to the other Audit firm whwhose tenure has expired in a company shall be reappointed for 5yrs. But if Auditor of the company was a sole proprietor and he is also a partner in other firm can that firm be appointed as Auditor

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Himalaya asked 6 years ago

Question Tags: Sec 139(2)

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Ravi Staff answered 6 years ago

i understand CA is sole proprietor in one entity and partner in another, so technically it is not common partner of both entity.
but as per spirit of law he is common in both entities, so i will say that even in case of sole proprietor, law will apply and where is present as partner such firm will not be eligible for appointment.