Question ID :
44970
ROTATION OF AUDITOR
FACT:
I WAS APPOINTED AS STATUTORY AUDITOR IN PROPRIETORY CONCERN OF A LISTED COMPANY IN THE FY 2018, FOR 3 YEARS , MAY 2020 THE PROPRIETORY CONCERN WAS CONVERTED INTO PARTNERSHIP FIRM AND FRN OF BOTH FIRMS IS THE SAME, AND PARTNERSHIP FIRM WAS AGAIN APPOINTED AS STATUTORY AUDITOR IN FY 2021 FOR 5 YEARS, APPOINTMENT OF THE PARTNERSHIP FIRM IS TILL 2026.
QUESTION:
1. CAN PARTNERSHIP FIRM BE REAPPOINTED AS STATUTORY AUDITOR FOR 2 ND TERM OF 5 YEARS OR NOT,
2. IF NOT, CAN THE PARTNERSHIP FIRM BE APPOINTED FOR THE BALANCE TERM OF 2 YEARS? OR
3. AUDITOR IS LIABLE TO RETIRE BY ROTATION.
Posted by
CA. MURALI MANOHAR
on
Mar 14, 2026
Filed Under
Companies Act, 2013
A firm can serve a maximum of 10 consecutive years. Already served 8 years. Balance allowed ? 2 years only.
Full 5-year second term NOT allowed.
Auditor rotation under Section 139 is mandatory rotation & not “retirement by rotation” like directors
Posted by
CA. SATISH CHAND GARG on
Mar 26, 2026
Answer ID :
86115
rotation shall not apply to firms
Posted by
SIVADAS CHETTOOR on
Apr 07, 2026