Auditors Disqualification of A Practicing CA

One Practicing CA whose father is working in a private company as Accounts Dept head .But his father is not holding any KMP post neither he is a Director in that private company .can that CA or any other partner of the same firm accept the appointment as statutory auditor of that pvt company? Any disqualification attracted under section 141(3) or Second Schedule Part I Clause 4 of the CA Act 1949
?
Replies (2)
Quick Summary
This discussion explores whether a practicing Chartered Accountant (CA) is disqualified from auditing a private company if their father works in the company's accounts department, but not in a Key Managerial Personnel (KMP) or Director role. The consensus suggests no disqualification under Section 141(3) or the CA Act 1949, as the father's position doesn't meet the criteria for disqualification. However, it's advised that CAs document their independence assessment to avoid perceived conflicts of interest.

Yes, because he is not KMP as per Companies Act

As a best practice, CAs should document their assessment of independence and ensure no conflicts of interest are perceived in the performance of their duties as auditors.

 

 

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