Who are not qualified for appointment as the auditor of a company ?

The following persons shall not be qualified for appointment as the auditor of a company:

1) A body corporate.

2) An officer or employee of the company.

3) A person who is a partner or who is in the employment of an officer or employee of the company.

4) A person who is indebted to the company for an amount exceeding Rs. 1000.

5) A person who has given any guarantee or security in connection with the indebtedness of any third person to the company for an amount exceeding Rs. 1,000.

A person who is disqualified for appointment as auditor of the company’s subsidiary or holding company or a subsidiary of that company’s holding company, cannot be appointed auditor of the company.

If an auditor after his appointment suffers from any of the disqualifications, he shall be deemed to have vacated his office as auditor from the date he has become so disqualified.