Question ID :
44748
Rotation of Statutory auditors partnership firm
Whether the same partner can sign the financials of a listed entity for the sixth to seventh year in a row for a firm of statutory auditors ? As SQC 1 explains that signing partner can be engagement partner for seven years in a row of a listed entity? Is there any preventive clause anywhere in Companies Act,2013 to prevent a signing partner to sign the financials for sixth year in a row.As companies act says 50% of audit team should be rotated .But silent about the signing partner.
Posted by
DIXIT SHAILENDRA PREMSHANKAR
on
Nov 18, 2024
Filed Under
Companies Act, 2013
Yes, the same engagement partner can sign the financials of a listed entity for the sixth and seventh year as per SQC 1, which allows a seven-year tenure before mandatory rotation.
The Companies Act, 2013 mandates audit firm rotation (every 10 years or 2 terms of 5 years) and 50% audit team rotation, but does not restrict the signing partner specifically.
While ICAI’s Code of Ethics and SEBI (LODR) encourage independence, there is no legal bar on the engagement partner signing for the sixth year.
Posted by
SACHIN KUMAR RAI on
Feb 28, 2025