A CA firm can
become the official auditor of a PSU under Section 139 (5) and 139
(7) of the Companies Act 2013. The CAG is the official organisation
that appoints such firms with the Institute of Chartered Accountants
of India (ICAI).
firms need to have a full-time Fellow Chartered Accountant (FCA)
to become eligible for this position. A full-time FCA must not
practise in another firm or have a practice in his/her name, be
employed as a partner in other firms, be a full-time or part-time
employee in a company, and have total compensation and share from it
below the prescribed limit.
per two categories – one with audit fees up to Rs. 1.5 Lakh and one
with audit fees exceeding Rs. 1.5 Lakh.
CA firms with audit fees up to Rs. 1.5 Lakh is based on points.
Points are calculated on the number of full-time FCA/ACA partners,
the number of CA employees, the total association of the partners
with the firm, CISA/ISA certification of partners, etc.
CA firms with audit fees more than Rs. 1.5 Lakh is based on several
criteria. The firm needs to have a vintage of at least 10 years,
employ at least 6 CAs of whom 5 must be full-time members; at least 1
CA must be a partner for at 10 years or more, etc.
you follow a step by step guide to starting a CA
and get selected as an auditor for PSUs the future.
loan may help firms to grow their business and partners. This can
further aid them to apply for the above position.