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Auditing question" how to answer such question"

(Guest)

Dear Frnds,

Please guide how to answer such kind of questions.....?

Thanks

Pooja

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4 Replies

(Guest)

i think your question is incomplete ....

please give me the exact detail so that i will be able to give answer.

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SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 13 May 2010

ANSWER OF (C) POINT IS

LAXMAN has given guarantee for

the same. Laxman CAN'T be appointed as statutory auditor of H Ltd. BECAUSE U/S 224 DISQUALIFICATION OF AUDITOR ATTRACT WITH HIM I.E IE ANY AUDITOR HAVE BEEN IN DEBT EXCEEDS OF RS 1000.IT CAN'T BE AUDITOR OF THAT CO. SO IT CAN'T BE AUDITOR OK .

POOOOOOOOOOO UR B. POINT QUESTION HAS NO SENSE IT IS A WRONG QUESTION.

(Guest)

Dear Arvind, my question is complete as the same is asked in June 2007 CWA. https://www.futureaccountant.com/exam-question-previous-papers/cwa-icwa-inter-stage-ii/auditing-june-2007.php Hi Sudhir DISQUALIFICATION how? for (c) point... bcoz H is a parent company and S ltd is subsidary company and Ram ows S Ltd Rs 10000/- HOWEVER LAXMAN is a guarentor he is not in debt so he can b appointed as an auditor...is'nt he!!! Correct me if I m going wrong.....