05 March 2016
Dear Sir, We have a query related to Appoitment of auditor. Whether a Auditor can give loan to a Company? If Yes, Then such auditor can be appointed as auditor of the same company.
05 March 2016
According to my view, the answer is NO
Section 141 (3) of the Act read with Rule 10 prescribed certain persons not be eligible for appointment as an auditor of a company. A person who himself or his relative/partner is holding any security or interest in the company, or any company which is its holding, subsidiary, associate can't be appointed as auditor. Further A person or a firm who, whether directly or indirectly, has “business relationship” with the company, or its subsidiary,or its holding or associate company can't be appointed as an Auditor.
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