RB Associates, a firm of chartered accountants has two partners, R and B. The firm is already holding audit of 130 companies including audit of 90 NGOs. The firm is offered the audit of Labour Welfare Association.
As per the notification issued the ICAN:
i) In case of partnership firms of auditor, the ceiling on audit is hundred entities per partner of the firm.
ii) The maximum number of audits of the public company registered under Company Act is 10 and number of audits of other entities is 90 per partner.
iii) The firm can take maximum of two hundred audits (100 × 2), but the number of Audits of NGOs should not exceed 90. There are two partners – R and B.
iv) The firm is holding 90 audits of NGOs at present.
v) The firm can, therefore, accept audit of Labour Welfare Association assuming that Labour Welfare Association is registered under the Association Registration Act, 2034.