Answer Posted / manish shah

NO THERE IS NO DISQUALIFICATION OF AN AUDITOR IF HE IS
INDEBTED TO A PARTNERSHIP FIRM AND PROPRIETORSHIP FIRM AS
THERE IS NO PROVISION IN THE LAW FOR THE SAME. ONLY
PROVISION FOR THE SAME IS FOUND IN THE COMPANIES ACT 1956,
IF THE AUDITOR IS INDEBTED TO A COMPANY FOR RS 1000/-OR
MORE AND HELD SHARES OF THE COMPANY IN WHICH HE IS AUDITOR
FOR MORE THAN RS 1000/- AND THE SAME IS NOT DECLARED THAN
THE AUDITOR IS DISQUALIFIED.

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