Disqualification of an auditor
This query is : Resolved
Ayan Roy Chowdhury
(Querist)
03 January 2014
Mr X, Chartered Accountant is a partner of a firm M/s X & Co. Wife Of Mr X is a director of ABC Ltd. and in receipt of salary of Rs 30,000 pm. Can Mr x be appointed as an auditor of ABC Ltd.
Ankur Garg
(Expert)
04 January 2014
Appointment of Mr. X as auditor of ABC Ltd is not advisable as his wife is the Director of company receiving salary.
As per ICAI guidance note a CA should not accept audit of a company where his/her relative is on the board of directors as the will adversely affect the independence of auditor.
This is specifically prohibited under section 141(3) of the Companies Act, 2013.
As per ICAI guidance note a CA should not accept audit of a company where his/her relative is on the board of directors as the will adversely affect the independence of auditor.
This is specifically prohibited under section 141(3) of the Companies Act, 2013.
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