ACC311 GDB No. 1 Announced

Ali & Ahmad Co. consisting of two partners Mr. Ali and Mr. Ahmad who acts as auditors of Shafee group. Ali & Ahmed splits up and, by mutual agreement Mr. Ali continues the practice in the name of Ali & Ahmad Co. while Mr. Ahmad starts his practice as Ahmad & Co”

Required:

Keeping in view the above situation answer the following questions:

(i) Will Ahmad on his cessation as partner of Ali & Ahmad Co. automatically cease to be auditors of Shafee group, or will he be deemed to continue as auditor of Shafee group?

(ii) If Ahmad is deemed to continue as auditors, would Ahmad and Ali & Ahmed Co. automatically become joint auditors of Shafee group?

Your answer must be confined in two to three lines. Avoid including extra material for answering. Just provide to the point answer for requirements.