Sir, my question is : if a relative of an auditor of a company is a key managerial personnel like MD or a non executive director in a holding or subsidiary company then can a person accept the appintment as an auditor of the holding or subsidiary company ?
Yes this is loop hole
Kmp / directors of holding and subsidiary are not disqualified, only of that company are disqualified
ICAI has plugged only one loop hole , they have banned director of holding cannot become auditor of subsidiary company
Rest of the situations are allowed , bus auditor should be careful while accepting such assignments, it can affect independence