Disqualification of auditor
This query is : Resolved
18 June 2013
If statutory auditor purchases goods from the company on credit exceeding the value of Rs. 1000 but subject to the time limit which generally company allows in ordinary course of business then whether such auditor is disqualified as per section 226 ?
18 June 2013
If such person is indebted to the company exceeding Rs. 1000/- then they will be disqualified under section 226.
Message likes :
1 times
18 June 2013
Agreed Sir but i heard that it was decision of high court which had favored auditor in this respect so got confused.
18 June 2013
Hi
I don't have any such Court order, I am not aware of that fact.
I don't have any such Court order, I am not aware of that fact.
18 June 2013
No,.he is disqualified..he is deemed to vacated office of auditor
1)If amount outstanding exceeds Rs.1,000 irrespective of nature of purchase or period of credit allowed to other custmer(normal credit period)..
2)The provisions concerning disqualification of auditor as contained in section 226(3)d will be attracted...
3)The provision aims to ensure auditor is independent and under no obligation to company.
4)The auditor cannot argue that he is enjoying only normal credit period allowed to other customers.
5)Icai expert committee opinion in this regard
https://220.227.161.86/eac/eacfinal/vol9/1.htm
Thanks & regards
Ganesh babu k
1)If amount outstanding exceeds Rs.1,000 irrespective of nature of purchase or period of credit allowed to other custmer(normal credit period)..
2)The provisions concerning disqualification of auditor as contained in section 226(3)d will be attracted...
3)The provision aims to ensure auditor is independent and under no obligation to company.
4)The auditor cannot argue that he is enjoying only normal credit period allowed to other customers.
5)Icai expert committee opinion in this regard
https://220.227.161.86/eac/eacfinal/vol9/1.htm
Thanks & regards
Ganesh babu k
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Section 50-fixed asset-->building ceases to exist
- Reprocessing of rectification order AY 2025-26
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Putting a heading on received mail
- Gift Received from nonblood relative
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Regime change
- Consolidated financials
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
