A CA whose relative is a director of the company is what, as to its audit?
AEligible with a certificate
BIneligible for appointment
CEligible for one year only
DEligible if relative resigns
Answer & Solution
Correct answer: B. Ineligible for appointment
Having a relative who is a director or key managerial personnel disqualifies a person from auditing that company.
Keep practising Ethics and Terms of Audit Engagements
Browse all Ethics and Terms of Audit Engagements questions for CA Inter, or explore more Auditing topics.
Related questions
Quoting very low audit fees to win repeat business threatens what?Independence in appearance is also known as what?Which is one of the five threats to independence in the IESBA Code?Why is independence called the cornerstone of the auditing profession?Which action does the principle of auditor independence rule out?A cost audit under section 148 relates to the section 143 audit how?Can the statutory auditor appointed under section 139 also do the cost audit?A cost audit under section 148 is conducted by whom?