If a patner of a firm other than the partner who signed the audit report leaves the firm to join another firm(consider Firm2 ) which is appointed as auditor (as a result of rotation).
Is the Firm2 disqualified from being appointed as an Auditor?
No disqualification applies only in signing partner leaves and joins new firm, if rotation is applicable to old firm
Yes disqualification is applicable to all the partners of predecessor firm if completed the tenure of 5/10years as the case may be.
Team Auditguru I would please an explanation for your above answer.
Below is extract form Rule 6 Sub Rule (3) Company Audit & Auditor Rules 2014, Please read sentences in BOLD. It clearly specifies if partner who is incharge + certifying financial statements leaves firm and joins another firm then they will be ineligible.
If intention would have been all partners, they would have said if any partner leaves and joins another firm.
Explanation. II – For the purpose of rotation of auditors,-
a break in the term for a continuous period of five years shall be considered as fulfilling the requirement of rotation;
if a partner, who is in charge of an audit firm and also certifies the financial statements of the company, retires from the said firm and joins another firm of chartered accountants, such other firm shall also be ineligible to be appointed for a period of five years.