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Disqualification of auditor

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 January 2013 Dear All:

As per Section 226 A firm would also be disqualified to be appointed as an auditor even if one partner is disqualified under this clause.

For Example:

ABC Ltd wants to appoint an auditor.

XYZ a partnership firm.

Having X,Y & Z as partner and Partner X has been disqualified for appointment as an auditor under Section 226 and thus firm is also disqualified as he is not eligible.

Now my Question if one of the partner say Y (Partner out of XYZ ltd) is also partner with another firm say YM Ltd (firm of CA), where Y & M are partners, can they be appointed as auditors of ABC Ltd.

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CA Priyank Singhi

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CA Priyank Singhi (Expert)
02 January 2013 I don't think there is a provision regarding this. As per my understanding the firm YM ltd should not be disqualified as auditors.
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