Question

$XYZ$, a C.A. firm is an auditor of Lawan Pvt Ltd. $X$ included $Y$ as a partner in the firm. Then who will be the auditor?

• A. $X$
• B. $Y$
• C. Both $X$ and $Y$
• D. None of the above

Answer 1

The correct option is C Both $X$ and $Y$

Section $141\left(1\right)$ and Section $141\left(2\right)$ of Companies Act, $2013$ contains provision as regards to qualifications of auditors. 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 Accountants Act, $1949$.
In this $XYZ$ is a chartered accountancy firm which implies that all the partners are chartered accountants. Thus if $Y$ has been appointed as partner of $XYZ$ then he is also CA. Thus all partners of $XYZ$ firm can be appointed as auditors. So, Both $X$ and $Y$ will be the auditors.