Companies Act, 2017

PART-VII

AUDIT

From: 2023-11-01 - To: 0000-00-00 247. Qualification and disqualification of auditors- (1) A person shall not be qualified for appointment as an auditor- (a) in the case of a public company or a private company which is subsidiary of a public company or a private company having paid up capital of 1[three million rupees or more] unless such person is a chartered accountant having valid certificate of practice from the Institute of Chartered Accountants of Pakistan or a firm of chartered accountants; and (b) in the case of a company other than specified in clause (a), unless such person, is a chartered accountant or cost and management accountant having valid certificate of practice from the respective institute or a firm of chartered accountants or cost and management accountants, having such criteria as may be specified: Provided that for the purpose of clause (a) and (b), a firm whereof majority of practicing partners are qualified for appointment shall be appointed by its firm name to be auditors of the company. (2) Where a partnership firm is appointed as auditor of a company, only the partners who meet the qualification requirements as provided in sub-section (1), shall be authorized to act and sign on behalf of the firm. (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 other than in the ordinary course of business of such entities; (e) a person who has given a guarantee or provided any security in connection with the indebtedness of any third person to the company other than in the ordinary course of business of such entities; (f) a person or a firm who, whether directly or indirectly, has business relationship with the company other than in the ordinary course of business of such entities; (g) a person who has been convicted by a court of an offence involving fraud and a period of ten years has not…