Section 111 and 112 of the Companies Act, 2063 set clear rules for who can — and cannot — audit your company. Getting this wrong invalidates your audit entirely.
Legal Requirements
- Must be a Chartered Accountant licensed by ICAN
- Must be independent — no financial interest in the company being audited
- Cannot be an employee, director, or relative of a promoter
Foreign Auditors
Foreign auditors may participate in an advisory capacity on engagements involving multinational clients, but only an ICAN-licensed Chartered Accountant can sign the final statutory audit opinion.
Practical Selection Criteria
- License and standing: confirm active ICAN registration, not just a claimed qualification
- Industry experience: a firm familiar with your sector spots relevant risks faster
- Communication: your auditor should explain findings in plain terms, not just technical jargon
When a Company Needs an Audit Committee
Companies with paid-up capital of NPR 30 million or more must additionally form an Audit Committee, adding a governance layer beyond the auditor relationship itself.
Looking for an ICAN-licensed audit partner who understands your industry? Company Sathi combines CA-led audit with practical, plain-language reporting.
