Policy of Empanelment of CA Firms/LLPs and Selection of Auditors


Empanelment of CA firms/LLPs


Chartered Accountant firms (firms) and Limited Liability Partnerships (LLPs) in India with at least one full time [1] FCA (Partner/Sole Proprietor) can apply for empanelment with this office for the purpose of appointment of auditors of Companies as per Section 139 (5) and 139(7) of the Companies Act 2013 and of Statutory Corporations/Autonomous Bodies as per the provisions of their respective Acts.  

The criteria for empanelment and selection of statutory auditors have been arrived at after due consultation with the Institute of Chartered Accountants of India.


Selection of firms/LLPs for appointment as auditors where audit fee are upto Rs.1.50 lakh


The selection is made by correlating the point score earned by each firm/LLP of Chartered Accountants towards empanelment with size of the audit fee.  The point score[2] is based upon the experience of the firm/LLP, number of partners and their association [3] with the firm/LLP, number of Chartered Accountant employees, as detailed below: 


 Experience of the firm/LLP

0.5 point for every calendar year -Maximum 15.

(Counted from the date of constitution of the firm/LLP with one full time FCA or date of joining of the firm/LLP by the existing partner having the longest association with the firm/LLP whichever is later.)

Full Time FCA Partners

5 points each for first 5 partners and 2.5 points each from 6th partner onwards.

Full Time ACA Partners

3 points each for first 5 partners (including FCA partners) and 1.5 points each from 6th partner onwards.


Points for long association with the same firm/LLP

5 points for each partner above 25 years.

4 points for each partner above 20 years.

3 points for each partner above 15 years.

2 points for each partner above 10 years.

1 point for each partner below 10 Years but above 5 Years.

Full Time CA Employees

1 point each for first 20 C.A Employees-Maximum 20 points

CISA/ISA Qualified Full Time Partners

2 points each for three partners. -maximum 6  points

CISA/ISA qualified Full Time Chartered Accountant Employees

1 point each – Maximum 3 points for 3 employees.

Turnover of the firm/LLP [4]

Maximum 5 points


Selection of firms/LLPs for appointment as auditors where audit fee is above Rs.1.50 lakh (Major Audits)


(a)      Criteria for short-listing eligible firms/LLPs of CAs for allotment of Major audits are as under:


(i)       The firm/LLP should have at least 6 CAs (out of which 5 should be full time partners and one could be a full time paid CA employee), which is indicative of capacity to handle big audits .


(ii)       At least one partner should have an association of 10 years or more with the firm/LLP and at least 3 partners of the firm/LLP should have an association of 5 years or more with the firm/LLP and the remaining two should have an association of one year or more with the firm/LLP, to demonstrate stability over time.


(iii)   The firm/LLP itself should have been in existence for 10 years or more, to prove that it is a well established firm/LLP.


(b)   Allotment of major audits is based not only on the size of the firm/LLP considering the number of partners, and their association with the firm/LLP, number of Chartered Accountant employees, and the Zone in which the firms’/LLPs’ head office is located but also on the basis of factors such as sectoral experience, service tax paid by the firm/LLP on assurance services, capability of handling big audits, past performance, eligibility of the firm/LLP to conduct a particular audit, location of the firm’s/LLP’s branch offices etc.

[1] Full time partner does not include

   A person who is


(a) a partner in other firms/LLPs


(b)  Employed full time/part time elsewhere, practicing in their own name or engaged in practice otherwise or engaged in other activity which would be deemed to be in practice under Section 2(2) of the Chartered Accountants Act, 1949.


 (c)    i)    Partners whose  total compensation @ from the firm/LLP is below the following limit:

Head office of the firm/LLP located in Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad:

            ACA partner       Rs. 1.80 lakh in a year (Rs. 15000/- per month)

            FCA partner        Rs. 3.00 lakh in a year (Rs. 25000/- per month)

Head office of the firms/LLP located other Places:

             ACA partner       Rs. 1.20 lakh in a year (Rs. 10000/- per month)

             FCA partner        Rs. 1.80 lakh in a year (Rs. 15000/- per month)

  (c)  ii)   A partner whose individual percentage share in the total compensation@  is less than:

           Firms/LLPs having more than 14 partners                                1%

           Firms/LLPs having 10 to 14 partners                                          3%

Firms/LLPs having 5 to 9 partners                                          5%

           Firms/LLPs having less than 5 partners                                     8%


@Total compensation = Sum total of share of profit, remuneration and interest on capital of all the partners from the firm/LLP.


[2] All members (sole proprietors/partners/ CA employees) will get points if they were exclusively associated with the firm/LLP throughout the calendar year immediately preceding the year of empanelment.


[3] In case of merger, the partners of the merging firms/LLPs will be assigned points after one year of merger and points for partner’s association to be given after five years from the date of merger.


[4]  Basis of points for Turnover of the firm/LLP


Sr No.

Metro Stations

(Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad)

Non-Metro Stations

             (Other Stations)


Rs. in crore


Rs. in crore



     Upto 1.00

No points

Upto 0.60

No points


>1.00 ----2.00


>0.60 ---1.20



>2.00 ----3.00


>1.20 ---1.80



>3.00 ----4.00


>1.80 ---2.40



>4.00 ----5.00


>2.40 ---3.00



Above 5.00


Above 3.00