If any director is disqualified from being appointed under section 274 1 g the auditor should mentio...........

Auditing Audit and auditor's report

If any director is disqualified from being appointed under section 274 (1) (g), the auditor should mention this fact in his audit report. For this purpose, how does he determine their eligibility :

He obtains a representation from each director

He obtains a management representation

He enquiries from Registrar of Companies

Any one of the above

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Explanation:

- Understanding Auditor's Responsibility:

- An auditor must ensure that the directors are not disqualified under specific sections of the Companies Act.

- For accurate reporting, the auditor needs reliable information from credible sources.

- Option Analysis:

- Option 1 - He obtains a representation from each director: Correct, as obtaining a direct representation from each director provides specific confirmation of their eligibility and helps the auditor ensure compliance with section 274 (1) (g).

- Option 2 - He obtains a management representation: While useful, it's not as specific as direct representations from directors themselves but can be part of the process.

- Option 3 - He enquiries from Registrar of Companies: This can be difficult and less direct than getting personal confirmation, though it might support verification.

- Option 4 - Any one of the above: Incorrect, as relying on direct representation is the recommended approach.

- The correct answer is He obtains a representation from each director from Option 1.