Three Chartered Accountants, Mr. Arjun, Mr. Siddharth and Mrs. Kavita formed a Limited Liability Partnership under the Limited Liability Partnership…
CA Intermediate · Corporate and Other Laws · MTP · January 2026
Three Chartered Accountants, Mr. Arjun, Mr. Siddharth and Mrs. Kavita formed a Limited Liability Partnership under the Limited Liability Partnership Act, 2008 in the name of ASK & Associates LLP, practicing chartered accountants. Zenith Resources Ltd. (ZR Ltd.) intends to appoint ASK & Associates LLP as the auditors of the company. Examine the validity of the proposal of ZR Ltd. to appoint ASK & Associates LLP, a body corporate, as an auditor of the company as per the provisions of the Companies Act, 2013.
Suggested Answer and Working Notes:
As per the provisions of section 141 (3) of the Companies Act, 2013 read with Rule 10 of Companies (Audit and Auditors) Rule 2014, a body corporate other than a limited liability partnership registered under the Limited Liability Partnership Act, 2008 shall not be qualified for appointment as auditor of a company. In the given case, proposal of ZR Ltd. to appoint ASK & Associates LLP as auditors of the company is valid as the restriction marked for appointment as auditor for a body corporate is not applicable to Limited Liability Partnership.
Topics: Audit and Auditors
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