49. Which of the following sections deals with qualification of the auditor?
IA] Section 226(1) and Section 226(2).
[B] Section 224(1) and Section 224(2).
[C] Section 226(3) and Section 226(4).
[DJ Section 224(3) and Section 224(4)
Answers
Qualification of a Company Auditor:
According to Section 226(1) and 226(2) of the Companies Act, the prescribed qualifications of an auditor are as follows:
Qualification [sec226 (1)]:
1. The auditor of a co. may be either, an individual or a firm
2. In the case of an individual, he should be a Chartered Accountant within the meaning of Chartered Accountants Act 1949 i.e. he should be holding certificate of practice.
3. In the case of firm of auditor’s all the partners of a firm shall be chartered accountants practicing in India within chartered accountants Act1949.
Qualification [Sec 226(2)]:
A person holding a certificate issued by central govt. under restricted state auditors rules prior to the enactment of part B state laws 1951 can also be auditor of the co.
The central government in empowered to frame rules relating to granting renewals, suspension or cancellation of such certificates.