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.
