Yes guys!! MCQs for the day - Mr.

Yes guys!!

MCQs for the day -

Mr. Chitragupta Bakutra, a Chartered Accountant is a sole proprietor of Bakutra & Co. which has
been appointed as a statutory auditor of Kraftic Ltd. from FY 2020-21, for a term of 5 years. Mr.
Chitragupta is a director simplicitor of Kalavitur Ltd. which acquired 55% shares of Kraftic Ltd., for
the first time, on 25th May, 2020. Mr. Chitragupta’s term as a director of Kalavitur Ltd. got expired
on 31st March, 2021
and he was not re-appointed. Kalavitur Ltd. made a proposal to Mr. Chitragupta for appointing
Bakutra & Co. as its statutory auditor from FY 2020-21, for a term of 5 years, which was accepted
by Mr. Chitragupta. Is there any violation of the Code of Ethics by Mr. Chitragupta Bakutra?

a)Yes, as he cannot be continued to be director of a company, the subsidiary of which he is an
auditor and also he cannot accept appointment of auditor of a Kalavitur Ltd. without finishing
of the cooling period for the same.

B) There is no bar in being a director simplicitor of a company, the subsidiary of which the
person is an auditor. However, by accepting appointment as an auditor of Kalavitur Ltd.
without finishing of the cooling period for the same, he has violated the Code of Ethics.

C) Yes, as he cannot be continued to be director of a company, the subsidiary of which he is an
auditor. However, there is no bar in becoming an auditor of a company of which a person has
been its director.

D)There is no bar in being a director simplicitor of a company, the subsidiary of which the
person is an auditor and also there is no requirement of following the cooling period by a
director simplicitor who on expiry of its term, wants to become auditor of such company.