Auditor Disqualification

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2010 I have been approached by a private limited company to carry on statutory as well as tax audit were my spouse is an employee. Whether if i accept the Audit assignment it amount to disqualification. Please guide me.

Ajay Mishra

Ajay Mishra (Expert)
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29 September 2010 Hi

Section 226(3)give the details that such persons shall be disqualified from being as auditor of any company whether it is public company or private company.

In your case you are not covered under the above section, you can appoint as auditor of the company.

Other views are also solicited.

Regards

Ankur Garg

Ankur Garg (Expert)
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29 September 2010 Disagree with expert.

Appointment of a relative of a director as an auditor should not be made.

In the legal sense a relative of a director of a company is not disqualified for appointment as an auditor of the company.

However, the council of the Institute of Chartered Accountants of India has suggested that a chartered accountant shall not accept the audit of a company where he is relative of the company's managing director or whole-time director and he believes that he would not be in a position to express his independent opinion.

Regards

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Querist : Anonymous

Querist : Anonymous (Querist)

30 September 2010 Dear Sir I would like to Further Clarify as under

My Spouse is not a director of the company. Nor i am relative of that companies managing director or whole time director. She is just working there.