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Which among the following are NOT qualified to be appointed as auditor of a company?  a) An individual who is a Chartered Accountant and holds a Certificate of Practice as per CA Act, 1949  b) A limited liability partnership firm, which has all partners as Chartered Accountants  c) Officer or employee of a company who is qualified Chartered Accountant degree holder too  d) Any Chartered Accountant whose appointment will result in the person being the auditor of more than 10 companies  Choose the most appropriate option:

Which among the following are NOT qualified to be appointed as auditor of a company?  a) An individual who is a Chartered Accountant and holds a Certificate of Practice as per CA Act, 1949  b) A limited liability partnership firm, which has all partners as Chartered Accountants  c) Officer or employee of a company who is qualified Chartered Accountant degree holder too  d) Any Chartered Accountant whose appointment will result in the person being the auditor of more than 10 companies  Choose the most appropriate option: Correct Answer b), c) and d)

An auditor is a professional who is qualified to conduct an audit of the company. Such a person evaluates the validity of the company's financial statements. This is undertaken to report if the company adheres to the established set of standards or procedures.

Who can be appointed as an Auditor?

Only a qualified Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 can be appointed as an auditor. However, the following points should also be considered for the appointment of an auditor.

  1. If the Chartered Accountant is holding a Certificate of Practice and practicing in his individual capacity, he may be appointed as an auditor only as an individual.
  2. If the Chartered Accountant is holding a Certificate of Practice and is a partner of a firm of chartered accountants, the firm may be appointed as auditor. Any partner of the firm may perform his duties in the name of the Firm.
  3. If any person is holding a certificate authorizing him to act as an auditor, even though he is not a chartered accountant, he may be appointed as auditor. Such Certificates are not being issued since November 1, 1956.

An officer or employee of the company is not qualified to be appointed as auditors of a company.

Related Questions

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