Hello friends,
I was revising Company Audit in IPCC group-II and got some question in my mind. I think some of them are quite silly but still I am posting it here.... please answer if possible....
1. u/s 226(3) a person cannot be appointed as auditor if he is indebted to the company for amount exceeding Rs 1000 or he has taken any guarantee or provided any security for third person. My question is - Is this limit of Rs 1000 a net amount or gross amount? I mean if a person is Debtor of company for Rs 1 lac and also a creditor for Rs 99000 then is he qualified?
2. u/s 226(3) each and every partner of the firm must be qualified to be appointed as a auditor then only the firm as a whole can be appointed as auditor. What if any partner is a minor admitted only for benefit ?? I know it's a very silly question but can't avoid asking it.... sorry
3. u/s 224(5) for appointment of 1st auditor the board of director has to appoint auditor within 1 month of date of incorporation else if they do not appoint then company in general meeting has to appoint the auditor. But what if the date on cerificate of incorporation is wrongly stated (like two month earlier). u/s 35 the certificate of incorporation is conclusive and no one can challenge it. Now in this case do the board of director lose their right to appoint auditor?
4. u/s 226(3) a person is disqulified if he hold securities holding voting right. now u/s 87 there are cases when preference shareholder get voting right. If the auditor also hold some of preference share then is he too disqualified?
Thanks in advance... and sorry for my wierd questions
CAclubindia
