14 October 2009
Hello members my query is regarding application of sec 226(3)(d) which specifies disqualification when auditor indebted to co. for sum exceeding 1000 and also it has been specified in code of ethics that a member should not owe more than 10000 to any concern whom he is considering for audit assigment. Whether the same will be applicable for Banks i.e. nationalised banks where one of the partners has taken loan. is the above disqualification for statutory audit only. or do concurrent audit and revenue audits are also covered for the same. please reply urgently.
14 October 2009
As per wordings of act and interpretation of it. Banks are also included in above catagory. As section specifically is for Statutory auditor it will not attract disqualification for concurrent audit and revenue audit.
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