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Ca, 2013

Rahul (CA Final) (74 Points)

14 October 2014

Can Ordinary Director become the Auditor of a company as per section 141 of Chapter X of CA, 2013?

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4 Replies

CS Mitesh Mehta (Company Secretary) (17139 Points)
Replied 14 October 2014

No.

Director can't be appointed as auditor

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Rahul (CA Final) (74 Points)
Replied 14 October 2014

Sir, MD & WTD are categorised as employees of the company. But Ordinary Director is not an employee or officer of the company. Can u please give the reason for your reply

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 15 October 2014

I haven't read about new act yet ...

but still ordinary director is directly or indirectly attached with affairs of the company and auditor should be independent to give a true and fair view

which is not possible when he becomes director. Hence he is ineligible for becoming the auditor of the company. I'm talking about statutory auditor.

Rahul (CA Final) (74 Points)
Replied 15 October 2014

Yes, i just read the meaning of officer defined in CA, 2013. And it includes "any director". That means even ordinary director Hence ordinary director is disqualified to be statutory auditor of a co.