Mr. Raj, a chartered accountant is a director in X Ltd. Whether he is disqualified to be the auditor of Y Ltd, its holding company.

1 answer

As per company’s act Sec 141(3) director of holding / subsidiary / associate are not disqualified to do audit of company, which is a loop hole in company’s act. But ICAI has plugged one loop hole as per ICAI announcement Director of holding company cannot do audit of company so this one loop hole is plugged.
but in your case auditor is director of subsidiary and wants to audit of holding so technically it is allowed

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