Auditaudit Staff asked 2 years ago

Dear sir please guide how to write answer of class 4 part 1 sec schedule with ref to below.
As per sec 143(3) a person himself,relative,partner disqualified for appointment as auditor if holding any sec. 
And a person whose relative is director or KMP in co.

1 Answers
RaviRavi Staff answered 2 years ago

You have to apply both Sec 141(3) and Clause 4 & Its Clarifications one by one
First explain clause and then explain Sec 141(3) and then discuss case in same sequence and then give conclusion
Some cases may be misconduct as per both or misconduct as per any one of them
You can refer both and give answer as per both
Further First Schedule Part 1 Clause 9 is also relevant when 141(3) in involved so refer this clause also
whenever there is close relationship between auditor and client
clause 4 becomes relevant 
also Sec 141 disqualification and hence clause 9 also become relevant 
hence both clauses can be referred and applied  

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