Signature of audit reports Signing auditors’ report in firms name Whether legally valid

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.... review of the existing practices of signing auditors' reports on the balance sheet and profit and loss accounts of companies in a "firm name", this Department is advised that in view of sections 4 and 5 of the Indian Partnership Act, 1932, there cannot be a "firm name" without a contract of partnership between two or more persons. Hence, the question of a single chartered accountant carrying on h....

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....e partner concerned should invariably sign in his own hand for and on behalf of the firm appointed to audit a company's accounts, and this is what is required by the provisions of the Act. The existing practice of a separate disclosure to Registrar about the identity of the partner of a firm the name of which is affixed to the auditor's report and other documents annexed thereto, will not suffice ....