appointment of an auditor

No as per my view the auditor will be disqualified as soon as he is indebted to the company and should vacate his office as per section 226(5).

With Regards,

Kalpesh

He can take advance audit fee towards work done and he'll not be disqualified u/s. 226..
S. 226 says that auditor will be disqualified only when he is indebted to client for more than Rs. 1000 but advance audit fee will not be considered as advance or loan

Hello Shrikant,

I think as per rules Audit fees can be given on progessive basis but set off against debt is not allowed.

 I have uploaded the suggestions for the students for download purpose.

Kindly follow the below link.

1.For IPCC and PCC - Cost FM

https://www.caclubindia.com/forum/important-suggestions-for-pcc-and-ipcc-students-for-cost-amp-fm-86545.asp

2. For IPCC and PCC - Law, Ethics and Communication

https://www.caclubindia.com/forum/important-suggestions-for-pcc-and-ipcc-students-for-law-eth-86515.asp

With Regards,

Kalpesh