Appointment of auditor

Your clarifiction can be answered in two: Firstly, A practicing Chartered Accountant can only be eligible to attest the Tax and VAT audit report. Secondly, to be unbiased while attesting any function related to accounting, auditing etc., the 'independence', one of the basic principle governing an audit should be carefully looked into. In this respect Chartered Accountants Act, 1949 will come into play an objectional role.
 

As per recent clarifications given by the ICAI, a CA can not audit his direct
relatives business