Appointment auditor of bank

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2014 If a Chartered Accountant is having account at bank for which he is appointed as auditor... is it attract disqualification for appointment as auditor?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 July 2014 no. that doesnt result in disqualification

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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29 July 2014 yes if exceeding 1000 under co act 1956 as bank will be liable to pay this to the auditor.

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 July 2014 Dear Tushar,

Section 226(3)(d) of the Companies Act 1956 talks about indebtedness towards the company.

Having an account with the bank would mean indebtedness towards the auditor, which wont result in disqualification.

Please refer:

226(3)(d) a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees ;