Question

As per the requirements of section $226\left(3\right)$ and $226\left(4\right)$ a person is disqualified from being appointed as a statutory auditor if he holds _________________.

• A. Equity shares or debentures of the company
• B. Equity shares carrying voting of the company
• C. Shares carrying voting rights of the company
• D. Security carrying voting rights of the company

Answer 1

The correct option is D Security carrying voting rights of the company

An auditor can not vote in a general meeting. In fact, a person can not be appointed as an auditor in a company, if he holds shares of the company, in the first place.

Note: Auditor should be 'independent' before and during the audit, that is a basic requirement of any audit.