Qualification/ disqualification of audit

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Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2011 respected sir i want to know about Disqualification of auditor whose relative is an officer in the company ...

CA Sumat Singhal

CA Sumat Singhal (Expert)
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29 September 2011 sec 226 of Companies Act deals with disqualification of Auditor but nothing contained about relative of auditor in it, however Code Of Ethics as Stipulated By ICAI council, requires in clause IV of part 1 of second schedule that if Auditor has substantial interest in company then he should keep in mind due professional care, objectivity and integrity, there is no bar from accepting such audit but a suitable disclosure should be made in Report.
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CS Sumat Singhal

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2011 as per amendment to CA Amendment Act 2006, auditor being disqualified to be an auditor in company where his relative are employee/ office or director but. i want to know latest rules for that disqualification
thank you