Question

Which of the following may be appointed as the first auditor of the company? (i) A Chartered Accountant in practice (ii) A firm of Chartered Accountants in practice (iii) A limited liability partnership of Chartered Accountants in practice.
The options are ________________.

• A. I, II and III
• B. I and III
• C. II and III
• D. I and II

Answer 1

Answer: (A)

I, II and III

A person shall not be qualified for appointment as auditor of a company unless he is a chartered accountant within the meaning of the Chartered Accountant Act, $1949(38$ of $1949)$. This applies to all LLP's which can be appointed as auditors of company but only chartered accountant partners are authorized to act and sign on behalf of firm.