Change in constitution of Auditors Firm and Signing of Auditors Report & Financial Statements

[Amar Kumar]

Fellow members

A proprietorship CA firm was appointed as Statutory Auditors as the first Auditors of the company for FY 2016-17. As on 1st April, 2017, the proprietor firm has been merged into a partnership firm and as on date of signing of Auditors Report & Financial Statements, the proprietor firm is not in existence.

My query on whom behalf Auditors Report & Financial Statements will be signed by the Auditor: in the name of proprietor firm or partnership firm.

[DR.MARIAPPAN GOVINDARAJAN]

The merger of the proprietorship to partnership firm may be intimated to the company and the company in turn approve the same and the accounts may be got signed by the firm. This is my view.

AI Summary

Auditor firm succession: notify and obtain company approval so the successor firm may sign the audit report.
Where a sole proprietorship auditor has merged into a partnership and the proprietorship no longer exists at signing, the change should be intimated to the company and the company should approve the change; thereafter the accounts and auditor's report may be signed by the successor partnership firm.