law: Companies Act, 2013 
  141.
  
    Eligibility,
  
  qualifications and disqualifications of auditors.
  1.      A person shall be
  
  eligible for appointment as an auditor of a company only if he is a chartered
  
  accountant:
  Provided
  
  that a firm whereof majority of partners practising in India are qualified for
  
  appointment as aforesaid may be appointed by its firm name to be auditor of a
  
  company.
  1.     
  2.      Where a firm
  
  including a limited liability partnership is appointed as an auditor of a
  
  company, only the partners who are chartered accountants shall be authorised to
  
  act and sign on behalf of the firm.
  3.      The following persons
  
  shall not be eligible for appointment as an auditor of a company, namely:—
  a.     
  
    a
  
  body corporate other than a limited liability partnership registered under the
  
  Limited Liability Partnership Act, 2008;
  b.    
  
    an
  
  officer or employee of the company;
  c.     
  
    a
  
  person who is a partner, or who is in the employment, of an officer or employee
  
  of the company;
  d.    
  
    a
  
  person who, or his relative or partner—
                       
  
   i.        
  
    is
  
  holding any security of or interest in the company or its subsidiary, or of its
  
  holding or associate company or a subsidiary of such holding company:
  Provided
  
  that the relative may hold security or interest in the company of face value
  
  not exceeding one thousand rupees or such sum as may be prescribed;
                      
  
   i.        
  
  
                      
  
   ii.        
  
    is
  
  indebted to the company, or its subsidiary, or its holding or associate company
  
  or a subsidiary of such holding company, in excess of such amount as may be
  
  prescribed; or
                     
  
   iii.        
  
    has
  
  given a guarantee or provided any security in connection with the indebtedness
  
  of any third person to the company, or its subsidiary, or its holding or
  
  associate company or a subsidiary of such holding company, for such amount as
  
  may be prescribed;
  a.     
  
  
  b.     
  
  
  c.     
  
  
  d.     
  
  
  e.     
  
    a
  
  person or a firm who, whether directly or indirectly, has business relationship
  
  with the company, or its subsidiary, or its holding or associate company or
  
  subsidiary of such holding company or associate company of such nature as may
  
  be prescribed;
  f.     
  
    a
  
  person whose relative is a director or is in the employment of the company as a
  
  director or key managerial personnel;
  g.    
  
    a
  
  person who is in full time employment elsewhere or a person or a partner of a
  
  firm holding appointment as its auditor, if such persons or partner is at the
  
  date of such appointment or reappointment holding appointment as auditor of
  
  more than twenty companies;
  h.     
  
    a
  
  person who has been convicted by a court of an offence involving fraud and a
  
  period of ten years has not elapsed from the date of such conviction;
  i.      
  
    any
  
  person whose subsidiary or associate company or any other form of entity, is
  
  engaged as on the date of appointment in consulting and specialised services as
  
  provided in section 144.
  1.     
  2.     
  3.     
  4.      Where a person
  
  appointed as an auditor of a company incurs any of the disqualifications
  
  mentioned in sub-section (3 ) after his appointment, he shall vacate his
  
  office as such auditor and such vacation shall be deemed to be a casual vacancy
  
  in the office of the auditor.