CA Inter P5 · Chapter 9 · Question 10 of 12
Under the Limited Liability Partnership Act, 2008 and the rules made under it, which of the following persons would NOT be eligible for appointment as auditor of a Limited Liability Partnership whose accounts are required to be audited?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A partner or employee of that LLP
Explanation
Under the LLP Rules, 2009, the accounts of an LLP that are required to be audited must be audited by chartered accountants in practice. A partner or employee of the LLP, or a person who is a partner of, or in the employment of, such a partner or employee, is not eligible to be its auditor, because the auditor would be examining accounts of a business in which he is involved. A practising chartered accountant or a firm of practising chartered accountants with no such relationship can be appointed, and auditing other unrelated LLPs is no bar.
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