Disqualifications of a Company Auditor [Sec.141 (3)]
The following persons shall not be eligible for appointment as an auditor of a company.
1. A body corporate, except Limited Liability Partnership.
2. An officer or employee of the company;
3. A person who is a partner of an officier or employee of the company.
4. A person who is a relative or his partner of a company or holding or subsidiary company or associate company is disqualified in the following circumstances:
a. When he is holding any security, or
b. When he is indebted in excess of Rs.5,00,000, or
c. When he is given a guarantee or provided any security in connection with indebtedness in excess of Rs.1,00,000.
5. A person or a firm has business relationship of such nature with a company or holding or subsidiary company or associate company.
6. A person whose relative is a director or is in employment of the company as director or key managerial personnel.
7. A person holding more than 20 company audit (20 company audit shall exclude one person company, small company, dormant company, private company with paid up capital less than Rs.100 Crore).
8. A person who has been convicted by a court of an offence involving fraud and a period of 10 years has not elapsed from the date of such conviction.
9. Any person who is engaged in consulting and specialized services.