Auditor can be appointed or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 May 2014 A CA is appointed as Auditor of a Public company i.e.Stock Broking Company. And the father of Auditor is client of that Broking company, having demat & trading A/c. Bill may be outstanding for few days exceeding Rs. 1,000/-

Q. Auditor can be appointed as Auditor? Any Professional ethics is restricting to auditor if relative is client of Auditee and outstanding bill exceeds Rs. 1,000/-?

Thanks in Advance..

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

28 May 2014 for attracting section 226 disqualification co act 1956 the auditor has to be the person and not the clinet even if he is relative ...so audiitor can be appointed in this case.