|On the subject, Reserve Bank of India has informed as under:
- The list received from C&AG and ICAI include names of firms satisfying the eligibility as on January 1 of the relevant year, RBI is required to ensure that the firm continues to comply with the eligibility norms prescribed at the time of being appointed as statutory auditors. Accordingly, the banks have been advised to refer cases to us where there is change in constitution of the firm after January 1 of the relevant year. Cases so referred to us are examined by us (Reserve Bank of India) for determining the eligibility of firms for being appointed as statutory auditors. Therefore, in case if a partner gives a declaration that he is not exclusively associated with the firm thus making the firm ineligible for appointment, RBI does not approve the appointment as the firm does not satisfy the eligibility criteria.
- Further, ICAI may ensure that in order to be eligible, the firm must satisfy the eligibility norms as on January 1 of the relevant year as also at the time of empanelment when they are required number of partners are exclusively associated with the firm as on both these dates.