Sir, If an auditor is providing unsecured name in his name or relative name to a company for more than 500000 will he be disqualified from being appointed as a auditor? if yes ,what would be the provision regarding this?
if auditor / relative / partner / firm indebted to company for amount exceeding 5,00,000 then disqualified under 141(3)
now opposite if company indebted to auditor / relative / partner / firm for amount exceeding 5,00,000 then this situation specifically is not covered under 141(3) , if it is through securities like debentures , bonds auditor will be disqualified , if it is through loan in personal capacity technically not disqualified , if it is form firm money (business relationship) again disqualified….
even if not disqualified under 141 / auditor should not accept such appointment as it will affect independence