Audit and Auditors Notes for CA Inter Corporate and Other Laws (Chapter 10)

The notes start with the basic framework: Sections 139 to 148, the ADT form series and the Companies (Audit and Auditors) Rules, 2014. They then explain Section 141 on eligibility and qualifications. A chartered accountant in practice, or a firm (including an LLP) where the majority of partners are practising chartered accountants in India, can be appointed. The notes also point out that only partners who are CAs can act and sign on behalf of the firm. The disqualification part covers a body corporate other than an LLP, and officers or employees of the company.

Each disqualification point is followed by a short example with a yes or no answer, such as whether a director who is a CA can be the company's auditor, or whether a partner of an officer of the company is eligible. Working through these examples helps you apply the rule rather than just memorise it. Read the disqualification categories side by side, and then try the examples without looking at the answers. Use the notes alongside the Act text for the full wording of each sub-section.

These notes are useful for CA Inter students preparing for the Corporate and Other Laws paper who are studying the audit chapter. They are also helpful for articleship students and anyone who wants a quick summary of auditor eligibility rules before a practice test. The page preview shows the first three pages; open the full note in the Studycaller app to read the rest of the chapter.

• Sections 139 to 148 of the Companies Act 2013
• Companies (Audit and Auditors) Rules 2014
• Section 141 eligibility of auditors
• Chartered accountant in practice and firm eligibility
• Partners who can sign on behalf of an audit firm
• Disqualification of body corporate as auditor
• Disqualification of officers and employees of the company
• Relatives and partners of officers and employees