RAVI TEJA S (student) (706 Points)
11 October 2009pls tell me
can relative of a director appointed as auditer of the company. plss provide detail information on this...
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 11 October 2009
Sec 226 contains qualifications & disqulaifications of an auditor. Relative of a director is not disqualified from being appointed as auditor of company. Hence he can be appointed as auditor provided either his or the director's independence should not be effected due to this appointment.
One should also consider sec 314 regarding office or place of profit while making such appointment. (although generally 314 is not applicable for professional services)
Hence for details refer sec 226 & 314 of companies act
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 27 October 2009
Dear Ravi,
Section 226 of the Companies Act says "A person shall not be qualified for appointment as auditor of a company unless he is a chartered aacountant within the meaning of the Chartered Accountants Act,1949". Thus it becomes clear that there is no restriction by the companies act on appointing a director's relative as an auditor of the company.
Abhishek
(Student Final)
(292 Points)
Replied 13 April 2010
Chapter – 7 (Very important chapter for compulsory question in exam)
Disqualifications under section 226
Note:
Payal Gupta
(article assistant)
(176 Points)
Replied 18 April 2010
| Originally posted by : Payal Gupta | ||
 |
ABHISHEK SARDA IS RIGHT |
 |
according to provisions of CA ACT1949 relative can't be appointed as an statutory auditor
i.e he is disqualified as per CA ACT 1949
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
