Sagar Goyal GoyalSagar Goyal Goyal asked 7 months ago

Institute Answer:Compliance of Statutory Requirements Before Accepting Appointment: Clause (9) of Part I of the First Schedule to the Chartered Accountants Act, 1949, provides that a member in practice shall be deemed to be guilty of professional misconduct if he accepts an appointment as auditor of a company without first ascertaining from it whether the requirements of Sections 224 and 225 of the Companies Act, 1956 (now Section 139 and 140 read with Section 141 of the Companies Act, 2013), in respect of such appointment have been duly complied with. Board can appoint the auditor in the case of casual vacancy under Sections 139(8)(i) and Section 139(6) of the Companies Act, 2013. The non-acceptance of appointment by CA. X does not constitute a casual vacancy to be filled by the Board. In this case, it will be deemed that no auditor was appointed in the AGM. Further, as per Section 139(10) of the Companies Act, 2013 when at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company. The appointment of the auditor by the Board is defective in law. Hence CA. Y is guilty of professional misconduct as per Clause (9) of the First Schedule

My Opinion:  I relate this to Clause 8 but institute ans relates to clause 9
I have in doubt that CA X declined to accept the audit so in a way he shows his unwillingness to do audit which means he cannot be automatically reappointed under sec 139(10)…….If this interpretation is correct then institute ans is wrong 
Please clarify me Sir
I know I asked a lot of questions today but when I start solving prof ethics ques there are ques specific doubts …………Sorry for it ,Please clarify Sir and please mention if I am wrong in approach towards solving the questions or doubts are conceptual which means I have to watch lectures again because I watched it in september 18

2 Answers
RaviRavi Staff answered 7 months ago

there is nothing wrong, ask 100-200-1000 questions no problem, i will solve all of them
you are asking all quality doubts
its a good sign
no need to watch lectures again unless you are not able to recollect things
you can watch super revision, put email to we will send you link of super revision
first of all we dont know who was retiring auditor and whether he was willing or unwilling
Mr X was new auditor proposed and then we brought Mr Y
as per by ICAI when x declined old auditor will get re-appointed automatically
so there is contravention of Sec 139 
whenever there is contravention of 139 or 140 clause 9 is attracted
no question of clause 8
nothing is specified about communication with previous auditor 

Sagar Goyal GoyalSagar Goyal Goyal answered 7 months ago

I have super revision lectures and will watch it.
Thanks a lot Sir for solving all the queries. It helped me a lot.

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