02 October 2008
Q.1 X is a holding company , Y is a subsidiary company of X , Z is co-subsidary company of X.
A is a subsidairy company of X where A is not related to Y & Z.
CAN A PERSON BECOME AN AUDITOR OF COMPANY "A" IF HE HAS PURCHASED SHARES OF COMPANY "Z"
Q.2 X,a CA in practice is a statutory auditor of MNO Ltd. He purchased a car from the company under Hire purchase scheme run by the company on the same terms & conditions as applicable to all other customers. The cash down price of the car is Rs. 80000. The initial payment of 25% was made on signing of Hire purchase agreement and the balance is payable as Rs. 750 per month. The auditr has become indebted & is disqualified to act as an audior. Do you agree. Comment
03 October 2008
1.A person holding shares in Z is disqualified to be appointed as auditor to Z. By virtue of susection (4)of section 224 he is disqualified to be appointed as auditor to X holding company of Z and Y another susidiary of holding company Z.
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