Shivkumar PadhiShivkumar Padhi asked 2 years ago

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 ?

3 Answers
Auditaudit Staff answered 2 years ago

KMP JIS COMPANY KA HOTA HAI US COMPANY ME WO AUDITOR APPOINT NAHI HO SAKTA ……

RaviRavi Staff answered 2 years ago

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 

Auditaudit Staff answered 2 years ago

Ok. Thank you Sir.

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