Query in 'audit amendment notes'

Hi Friends,

 

I read the pdf file of 'amendments in Audit - applicable for May 2012 attempt' uploaded by caclubindia member 'Aseem'  (has done a great job)

 

I didn't get one particular para which was mentioned in that file, which is read as under :-

 

The Committee  on  Ethical  Standards,  decided  that  it is  not  permissible for  a member who has been Director of a Company, upon resignation from the Company to be appointed as an auditor of the said Company, and the cooling period for the same may be 2 years

 

Can anyone explain me what it exactly is?

Replies (1)

cooling period of two years means.

He can not be auditor for two years after resignation.

after than he can be appointed.

 

CA DHRUV

 

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