Question

Which of the following persons are not qualified for appointment as auditors of a company?

• A. A body corporate
• B. An officer or employee of the company.
• C. A person who is indebted to company for an amount exceeding Rs. 1000
• D. Holding securities having voting rights.
• E. All of the above

Answer 1

The correct option is E All of the above

A person shall be eligible for appointment as an auditor of the company if he is a qualified Chartered Accountant.

Below are the persons who are not eligible for appointment of auditor of the company:

• A body corporate
• An officer or employee of the company
• A person who is a partner of an officer or employee of the company
• A person holding securities having voting rights
• A person or a firm who is having business relationship directly or indirectly
• A person whose relative is a director or key personnel in the company
• A person who is indebted to company for an amount exceeding Rs.1000