A person is disqualified from being appointed as auditor of a company if he was disqualified from being appointed as aduitor of its holding or subsidary or the subisidary of that comapny's holding company......is the disqualification mentioned u/s.226 of companies act.
Now it is apparent that if a person is disqualified from being appointed as auditor of a company, he is also disqualified from being appointed as auditor of that comapnies subsidary, but for the subsidary of its subsidary.
For example...... A is subsidary of B. C is subsidary of A.Now if a person was disqualied from being appointed as auditor of B.Then he is also disqualified from bein appointed as auditor of A but not C.
Am i correct???????????????
CAclubindia
