Question

Sita, Gita and Vimla are three partners in a firm of chartered accountants, of whom Gita holds full-time employment elsewhere. The specified number of company audits in the case of the firm will be _________.

• A. Twenty
• B. Forty
• C. Sixty
• D. No limit

Answer 1

The correct option is B Forty

As per the guidelines issued by the Institute of Chartered Accountants of India, a chartered accountant can conduct the audit of company to the maximum of 20 in a year.

In the present situation, there are two full time partners working for the firm, hence the specified number of audit the firm can do is 40.