Appointment auditor of bank
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 July 2014
If a Chartered Accountant is having account at bank for which he is appointed as auditor... is it attract disqualification for appointment as auditor?
Nikhil Kaushik
(Expert)
26 July 2014
no. that doesnt result in disqualification
29 July 2014
yes if exceeding 1000 under co act 1956 as bank will be liable to pay this to the auditor.
Nikhil Kaushik
(Expert)
29 July 2014
Dear Tushar,
Section 226(3)(d) of the Companies Act 1956 talks about indebtedness towards the company.
Having an account with the bank would mean indebtedness towards the auditor, which wont result in disqualification.
Please refer:
226(3)(d) a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees ;
Section 226(3)(d) of the Companies Act 1956 talks about indebtedness towards the company.
Having an account with the bank would mean indebtedness towards the auditor, which wont result in disqualification.
Please refer:
226(3)(d) a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees ;
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Reward for festival
- 18% Rent a cab
- Clarification on GST, TDS, and Accounting Provisions for Import/Export
- Clarification on GST, TDS, and Accounting Provisions for Import/Export Commission Agents,profes. ser
- RCM and same line
- Movement of goods by packers and movers - type of sale - Reg.
- Appointment of Auditor By Form ADT-1
- ARCA LOGIN
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- Closer of business and itc of capital goods
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
