Which person are not qualified for the appointment as auditor of the company under the companies ordinance 1984?

Answer 1

) A person shall not be qualified far appointment as an auditor,-

(i) in the case of a public company or private company which is subsidiary of a public company unless he is a Chartered Accountant within the meaning of the Chartered. Accountants Ordinance, 1961 (X of 1961); and

(ii) in the case of a private company having paid up capital of three million rupees or more unless he is a Chartered accountant within the meaning of the Chartered Accountants Ordinance, 1961(X of 1961).

(2) A firm where if all the partners practicing in Pakistan are Chartered Accountants may be appointed by its firm name as auditors of a company referred to in subsection (1) and may act in its firm name.

(3) None of the following persons shall be appointed as auditor of a company, namely:-

(a) a person who is, or at any time during the preceding three years was, a director, other officer or employee of the company;

(b) a person who is a partner of or in the employment of, a director, officer or employee of the company;

(c) the spouse of a director of the company;

(d) a person who is indebted to the company;[ ]

(e) a body corporate; and

(f) a person or his spouse or minor children, or in case of a firm, all partners of such firm who holds any shares of an audit client or any of its associated companies:

Provided that if such a person holds shares prior to his appointment as auditor, whether as an individual or a partner in a firm the fact shall be disclosed on his appointment as auditor and such person shall disinvest such shares within ninety days of such appointment.

Explanation. - Reference in this section to an "officer" or "employee" shall be construed as not including reference to an auditor.

(4) A person shall also not be qualified for appointment as auditor of a company if he is, by virtue of the provisions of sub-section (3), disqualified for appointment as auditor of any other company which is that company's subsidiary or holding company or a subsidiary of that holding company.

(5) If, after his appointment, an auditor becomes subject to any of the disqualifications specified in this section, he shall be deemed to have vacated his office as auditor with effect from the date on which he becomes so disqualified.

(6) A person who, not being qualified to be an auditor of a company, or being or having become subject to any disqualification to act as such, acts as auditor of a company shall be liable to fine which may extend to twenty-five thousand rupees.

(7) The appointment as auditor of a company of an unqualified person, or of a person who is subject to any disqualifications to act as such, shall be void, and, where such an appointment is made by a company, the Commission may appoint a qualified person in place of the auditor appointed by the company.