Cap on Auditors for audit of 20 Companies not justified

The Institute of Chartered Accountants of India (ICAI) has asked the Ministry of Corporate Affairs to exempt private limited and small companies from the ambit of the restriction imposed by Section 141 of the Companies Act, 2013 on Eligibility, qualifications and disqualifications of auditors which caps the number of audits which may be conducted by any auditor to 20.

Under the new Companies Act, 2013, whose most provisions came into force from April 1, an auditor can now audit not more than 20 companies at any given time.

In the earlier corresponding provision contained in the Companies Act, 1956, private companies were exempted while calculating the maximum number of Companies.

The ICAI President K Raghu has said that limit on audits was likely to create practical difficulties for the profession.

Tag: Section 141 of Companies Act 2013

profile image

About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

India’s Leading Compliance Software

India’s Leading Compliance Software

Get A Demo Today !

Corporate Law Referencer

Corporate Law Referencer

Corporate Law Referencer

Recent Articles

Recent Legal updates

Recent Gst Updates