Suppose Firms A & Co, B& Co. merge in C & Co during the year
(a) All three firms are empanelled in bank branch auditor’s panel and audit is allotted to M/s B& Co. only.
In the above case, B& Co. will be allowed to take up the audit assignment in the name of C & Co. provided C& Co. has not been rested /denied audit/appointed as SCA in any PSB during the year. All the partners of the firm will be required to give an undertaking that they in their individual capacity/ in association with any audit firm have not /will not undertake statutory audit of any other public sector banks during that particular year.
(b) Both A & Co, B & Co are empanelled in bank branch auditors panel and audit is allotted to M/s B& Co only.
In the above case the name of the firm C 7 Co. being not on panel will not be eligible to take up the audit assignment. However, if the ICAI certifies that the merged firm (C& Co.) has the same registration number as either one of the merging firms and that the change in the name is only on account of merger, the firm may be allowed to take up the audit assignment in the name of C& Co.