APPOINTMENT OF AUDITOR OR PRIVATE LIMITED COMPANY
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 September 2010
I have been approached by a private limited company to conduct their statutory Audit as well as Tax Audit. But my Query is the private limited company which has approached me to conduct audit is company were my spouse is employee. My Spouse is neither director nor relative of director. Whether acceptance of assignment amount to disqualification.
01 October 2010
Appointment of a relative of a director as an auditor should not be made
In the legal sense a relative of a director of a company is not disqualified for appointment as an auditor of the company. However, special resolution under section 314 shall be passed if the remuneration of auditor exceeds the limits specified in section 314.
However, the council of the Institute of Chartered Accountants of India has suggested that a chartered accountant shall not accept the audit of a company where he is relative of the company's managing director or whole-time director and he believes that he would not be in a position to express his independent opinion.
In your case your spouse is the employee of the co. and you are not the relative of any director of the company. So as per my opinion you are not disqualified to be appointed as auditor.
In the legal sense a relative of a director of a company is not disqualified for appointment as an auditor of the company. However, special resolution under section 314 shall be passed if the remuneration of auditor exceeds the limits specified in section 314.
However, the council of the Institute of Chartered Accountants of India has suggested that a chartered accountant shall not accept the audit of a company where he is relative of the company's managing director or whole-time director and he believes that he would not be in a position to express his independent opinion.
In your case your spouse is the employee of the co. and you are not the relative of any director of the company. So as per my opinion you are not disqualified to be appointed as auditor.
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