Disqualification of an auditor

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aarya (Querist)
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07 July 2010 1)Can a relative of shareholder be an auditor of a pvt ltd. or public ltd. co.??? 2)What if the auditor is the relative's wife or brother??
3)Can a promoter's relative be an auditor of a pvt ltd. or public ltd. co.?
Will anybody please clarify this i am in a bit ambiguity.....

Ankur Garg

Ankur Garg (Expert)
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07 July 2010 1. YES

2. Not able to understand the case. Please explain

3. No...it is not advisable to appoint promoter's relative as an auditor of a pvt ltd. or public ltd. co keeping in view the auditor's independence.

You may also check section 226(3) and (4) for auditor's disqualification.

Regards

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