loans & advances taken by a company


This query is : Resolved 

(Querist)
25 July 2009 I want to ask that a auditor has given advances to a company in which he is the auditor. My query is that can he sign the auditors report or it is professional misconduct on the part of the auditor.

Reply as soon as possible

Ankur Garg (Expert)
25 July 2009 Hi,

I think it would be professional misconduct on the part of the auditor.

Refer section 226 (3)(d) of companies Act, 1956

Regards


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