Multiple choice

Mr. A (practicing CA) is a partner in XYZ Associates as well as ABC Associates. XYZ Associates retired under rotation as per section 139 (2). The company decides to appoint ABC Associates as the next auditor. Can the company do so?

  1. Yes

  2. No

  3. Yes but Mr. A can not sign the audit report

  4. Yes and Mr. A can sign the audit report

  5. Company can appoint other partners in ABC Associates except Mr. A
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As per section 139 (2) of Companies Act,2013, proposed audit firm having partner who is also a partner in the retiring audit frim is ineligible to act as the auditor of the company

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