Sir if an auditor supplies to a manufacturing company at arm length price will the auditor be qualified to be appoined as auditor of such manufacturing co considering rule 10 of companies(audit and auditor rules 2014)

Sir if an auditor supplies to a manufacturing company at arm length price will the auditor be qualified to be appoined as auditor of such manufacturing co considering rule 10 of companies(audit and auditor rules 2014)

1 answer

Ravi Staff March 14, 2018

if auditor is supplying goods (even if single transaction) then it is business relationship with company. Exemption is if company is given goods & services to auditor in Hotel / Hospital / Airlines / Telecom industry at arms length prices in normal course of business

As this case is not covered in exemption he will get disqualified.

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