Question
An auditor cannot audit a firm if his/her relative is
indebted to the company in excess of ______Solution
As per Companies Act, 2013, a person is disqualified from being an auditor for a company if he/she, or his/her relative or partner: § is holding any security of the Company or its subsidiary or its holding or associate company or a subsidiary of such holding company, (note – the act provides that the relative may hold security or interest in the company of face value not exceeding Rs.1 lakh or such sum as may be prescribed) § is indebted to the company or its subsidiary or its holding or associate company or a subsidiary of such holding company in excess of Rs.5 lakh § has given guarantee or provided any security in connection with the indebtedness to company, its holding, subsidiary and associate Company in excess of Rs.1 lakh
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