Question

Mr. Narayan, a Charted Accountant, has nineteen audits. Out of following audits which audits should he accept to ensure he doesn't violate provisions of section $224$(IB).

• A. Audit of Zeba Ltd. a private company
• B. Audit of branch of Pointec Ltd. a foreign company
• C. Audit of two branches of Virtue Ltd. an Indian company
• D. All of them

Answer 1

Answer: (D)

All of them

In the given case, Mr Narayan can accept all the audits given in the question due to following reasons:

1.Private company is not included in the ceiling limit.

2.Branch audit of a foreign company is not considered in calculating 20 audits cap.

3.Branch audit of Indian company is not considered in calculating 20 audits cap.