Question

A person who is indebted to the company for which amount cannot be appointed to set as an auditor of a company?

• A. As may be prescribed
• B. $1,000$
• C. $3,000$
• D. $5,000$

Answer 1

The correct option is A As may be prescribed

Section $141\left(3\right)$, of the companies act, $2013$ defines disqualification of the auditor. As per this section a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees is disqualified to be appointed as auditor.