AUDITING

I .Main Objectives of Auditing

The main objectives of audit are to know whether the accounts are true and complete and
have been maintained according to rules.

The primary objectives of auditing may be stated as under:

(1) The verification of the correctness of the books and records leading to a final account or
statement submitted to the real proprietors.

(2) The ascertainment that the business has been carried on in accordance with statutory or other
legal regulations.

(3) Ascertain that proper accounting principles and procedures and management policies are
followed.

(4) Report on the Balance Sheet as to whether it reflects the true and fair state of affairs of the
business and that the Profit and Loss Account shows the correct profit or loss of the business.

Subsidiary Objects of Auditing

The subsidiary objects of audit may be stated as follows:

(1) Detection of Errors: Generally errors are the result of carelessness or ignorance on the part
of the persons preparing the accounts. An auditor should be very careful about it, because
sometimes, errors which might appear as innocent are the results of fraudulent manipulation. For
example, a debtor sends Rs. 5000 by bank draft and the accountant forgets to make an entry in
the books; it is an error. On the other hand, if the accountant intentionally keeps the money with
him and spends it for his own use and does not make an entry in the books it becomes a fraud.
Thus, an auditor must pay particular attention to it. Errors may be of following types:

(i) Errors of Commission: An error of commission takes place when a transaction is incorrectly
recorded, either wholly or partially. Such error might arise due to wrong postings, calculations,
totaling and carry-forwards. For example:

(a) Goods worth Rs. 2,000 were sold to Monika but it is debited to the account of Swathi.
(b) Wrong recording in the books of original entry i.e., the amount of Rs. 322 might be entered
as Rs. 233 in the book of original entry.

(c) Posting of wrong amount to ledger account i.e., sales of R 1,000 to customer’s account as Rs.
100.

(d) Posting an amount on the wrong side of the ledger account instead of debiting an account it
may be wrongly credited and vice versa.

(e) Posting a wrong entry in the original record.

(f) Errors in balancing ledger accounts.

(g) Castings or carrying forwards of amounts by taking wrong balances of an account (errors in
casting, subsidiary record of ledger accounts).

(h) Entry of the transaction twice in the books. Some of such errors will be detected by the non-
agreement the trial balance while some errors of commission do not affect t trial balance.

(ii) Errors of Omission: Errors of omission arise due clerical mistake. If a transaction has not
been entered in the books accounts, wholly or partially, it is an example of errors of omission
Where a transaction is altogether omitted from the record, the error may be difficult to detect.
Because, as the transaction has not be posted to the ledger, it will not affect the agreement of trial
balance For example, if a credit purchase is not entered in the Purchas Day Book, it will not be
posted to the related ledger account, name on the debit side of the Purchases Account and on the
credit side the Supplier’s Account. The trial balance will not be affected by the omission. An
error of this type can only be detected by an intensive checking of the Purchases Book and the
Stock Book.

However, if a transaction has been partially recorded in t course of its posting to the ledger, the
error can be easily detect because it will throw out the trial balance. For example, if a credit sale
has been credited to the Sales Account but not debited to f Buyer’s Account, the trial balance
will show excess credit by amount of the sale and then it should not take long to discover the
error.

(iii) Errors of Principles: When principles of book-keeping and accountancy are not followed
in the treatment and recording items of a transaction, it is termed as errors of principle. These are
sometimes committed intentionally to falsify and manipulate accounts with an objective of
showing more or less profits than their actual figures. The following are some of the examples of
such types of errors:

(a) Where Items of revenue expenditure are shown as capital expenditure or vice-versa: For
example, some furniture was purchased by a furniture merchant for the purpose of sale and the
furniture account was debited. In this case, the furniture is purchased for the purpose of sale, so it
is revenue expenditure, therefore, the purchase account should be debited instead of furniture
account. Thus, in this case, the error of principle would arise.

(b) Posting an Item of Revenue or Expenditure to a Personal Account: If rent paid to

landlord is posted to the debit of his personal account, it is an example of error of principle, due
to which profits would be inflated and the Balance Sheet would be wrong.

(c) Where valuation of assets is not as per generally accepted accounting pinciples: It may
be done to overstate or understate the profits and financial position of the business concern.

(d) Providing inadequate or excess depreciation: Such errors are not disclosed in the trial
balance and these can be detected by thorough checking of each and every transaction.

(iv) Compensating Errors: A compensating error is one which is counter-balanced by another

error or errors. In other words, when the effect of one error is nullified by another error, then it is
called compensating error. If one account is over casted by say Rs. 100 and per chance if another
account is under casted by the same, then it is considered as compensating error.

(v) Error of Duplication: If a transaction is recorded journal and also posted in ledger twice or
more times, the trial balance will agree even though the error may not be disclosed.

(2) Detection of Frauds: When something is being done with an intention to mislead, to deceive
or to conceal the truth, it is called fraud.

II . The following are the 7 key principles of audit

1. Independence
2. Objectivity
3. Competence
4. Confidentiality
5. Professionalism
6. Due Professional Care
7. Continues Improvement
The 7 Key Principles of Audit
1. Independence
One of the key principles of audit is independence, which is the foundation of its
credibility. Independence refers to both the operational independence of the audit function and
the professional independence of individual auditors. The audit function should have a clear
reporting structure and should not be influenced by any other function or business unit within the
organization.
2. Objectivity
Objectivity is another vital principle of audit, which requires auditors to be impartial and
free from conflicts of interest. l auditors should not have any vested interests in the outcome of
their work and should approach their tasks with impartiality and fairness. This allows them to
provide an unbiased assessment of the organization’s operations and to identify areas for
improvement.
3. Competence
Competence is a critical principle of audit, as auditors are expected to possess the
necessary knowledge, skills, and experience to carry out their work effectively. auditors should
continually develop their skills and knowledge, and should be able to apply their expertise to the
specific needs of the organization.
4. Confidentiality
Confidentiality is a fundamental principle of audit, as auditors often have access to
sensitive and confidential information. auditors should maintain the confidentiality of all
information obtained during their work, and should only use it for the purpose for which it was
collected.
5. Professionalism
Professionalism is another important principle of audit, as auditors are expected to adhere
to high standards of ethical conduct and to act with integrity at all times. auditors should also
maintain a professional demeanor, be responsive and cooperative, and should not engage in any
behavior that might reflect poorly on the audit function or the organization.
6. Due Professional Care
Due professional care requires auditors to apply professional skepticism and to exercise
due care and diligence in the performance of their work. auditors should approach their work
with a critical eye, and should not accept information at face value. Moreover, they should also
take steps to verify information and test the validity of assumptions.
7. Continuous Improvement
Continuous improvement is the final key principle of audit, and refers to the need for the
internal audit function to continuously strive to improve its processes, procedures, and
techniques. Internal auditors should continually review their practices, and should identify
opportunities for improvement, in order to enhance the overall effectiveness of the internal audit
function.
Conclusion
In conclusion, the 7 key principles of audit serve as a framework for the audit function,
and provide a basis for the conduct of auditors. Adherence to these principles ensures that the
audit function is credible, effective, and provides value to the organization. The principles of
independence, objectivity, competence, confidentiality, professionalism, due professional care,
and continuous improvement are essential for the audit function to fulfill its role as a trusted
advisor to the organization.
III .Auditing technique
Auditing technique is defined as “any technique used by auditors to determine deviations
from actual accounting and controls established by a business or organization as well as
uncovering problems in established process and controls”.

Following are the important techniques of audit.

1. Examination of books of accounts

The basic technique of an auditor is to examine the books of accounts. The examination is
conducted to verify the accuracy of data.

2. Vouching

It refers to the examination of the original documentary evidence supporting the transaction.
Examples for vouchers are invoices, bills, receipts, debit and credit notes, etc.

3. Inquiry

The auditor makes inquires and collects information from persons inside and outside the
organization to check the correctness of the recorded data.

4. Sampling

Sampling refers to selecting and checking a few items from the whole accounting information.

5. Confirmation

The auditor contacts debtors, creditors, officials, etc and collects information which helps him to
confirm the transactions.

6. Compliance test

These tests are employed by the auditor to check the effectiveness of the internal control system
prevailing in the organization.

7. Financial system analysis

Financial statements such as profit and loss account and balance sheet re analyzed to establish
relationship between two accounting figures. Auditors generally use ratio analysis to test
liquidity, solvency and the profitability of concerns.

8. Computer techniques

The auditor may use techniques such as audit software, test packing, mapping, etc to test the
accuracy of accounting data.

9. Observation

The auditor relies on personal observation and witnesses the physical stock taking conducted at
the end of the year.

10. Expert opinion

the auditor contacts experts like engineers, lawyers, etc to gather their Opinion about the
business. He also depends on the internal auditors for completing his work.

IV. AUDIT PLANING:

Audit planning" means developing a general strategy and a detailed approach for the expected
nature, timing and extent of the audit. The auditor plans to perform the audit in an efficient and
timely manner. In simple words, developing an overall strategy for the effective conduct and
scope of the examination.

the 7 steps in the audit process?

Audit Process
Step 1: Planning
The auditor will review prior audits in your area and professional literature. The auditor
will also research applicable policies and statutes and prepare a basic audit program to follow.

Step 2: Notification
The Office of Internal Audit Services will notify the appropriate department or
department personnel regarding the upcoming audit and its purpose, at which time an opening
meeting will be scheduled.
Step 3: Opening Meeting
This meeting will include management and any administrative personnel involved in the
audit. The audit's purpose and objective will be discussed as well as the audit program. The audit
program may be adjusted based on information obtained during this meeting.

Step 4: Fieldwork
This step includes the testing to be performed as well as interviews with appropriate
department personnel.

Step 5: Report Drafting

After the fieldwork is completed, a report is drafted. The report includes such areas as the
objective and scope of the audit, relevant background, and the findings and recommendations for
correction or improvement.

Step 6: Management Response

A draft audit report will be submitted to the management of the audited area for their
review and responses to the recommendations. Management responses should include their
action plan for correction.

Step 7: Closing Meeting

This meeting is held with department management. The audit report and management
responses will be reviewed and discussed. This is the time for questions and clarifications.
Results of other audit procedures not discussed in the final report will be communicated at this
meeting.

Step 8: Final Audit Report Distribution

After the closing meeting, the final audit report with management responses is distributed
to department personnel involved in the audit, the President, Provost, and Chief Financial
Officer, and CWRU’s external accounting firm.

Step 9: Follow-up
Approximately six months after the audit report is issued, the Office of Internal Audit
Services will perform a follow-up review. The purpose of this review is to conclude whether or
not the corrective actions were implemented.

V.INTERNAL CONTROL:
Internal controls are accounting and auditing processes used in a company's finance department
that ensure the integrity of financial reporting and regulatory compliance.

Internal controls help companies to comply with laws and regulations, and prevent fraud. They
also can help improve operational efficiency by ensuring that budgets are adhered to, policies
are followed, capital shortages are identified, and accurate reports are generated for leadership.
VI .Internal check:

An internal check is a continuous process of the accounting system to check for errors or fraud
in bookkeeping operations for early detection and prevention. The internal check is an
arrangement of the duties of the staff members of the accounting functions in such a way that
another automatically checks the work performed by a person.

8 qualities make an internal check system more effective and efficient.

1. Division of Work
2. Provision of Check
3. Use of Devices
4. Self-balancing System
5. Job Rotation
6. Specialization
7. Control
8. Authority Level

1) Division of Work

No one should be allowed to have the right to perform the work from origin to end.

For example – a transaction of sale may have to be split into a display of article by staff, the
preparation of invoice by another, the receipt of cash against the invoice by a third clerk, the
delivery of article against the proof of receipted invoice by another clerk, checking of outward
movement of an article against delivery order by a clerk and so on.In big business houses, such
specialized tasks increase work speed and automatically introduce internal checks.

2) Provision of Check

An organization should set up such provisions so that work can be checked by other staff. An
officer can check the work of one staff by transferring to the staff and again.

3) Use of Devices

In this modem world, various devices can perform various functions like time record
machines, wage determination machines, etc. An organization should use machines that help to
make the work of internal checks easier.

4)Self-balancing System

An organization can use self-balancing ledger accounts, which help to make the work of
internal checks easier. Its effectiveness depends on its management.
 5) Job Rotation

No individual clerk should be allowed to occupy a particular area of operation for long.
Familiarity with and exclusiveness in a position offer a person greater flexibility to attempt
manipulation with the system.

6) Specialization

Every staff may not have such specialized knowledge to maintain accounts properly. So, an
organization should give training to increase their skills so that internal checks can be made more
effective.

7) Control

There is more chance of fraud where there is direct contact between consumers or the
public. So, a manager can keep an eye on those works so that the internal check system can be
more effective.

8) Authority Level

There must be clear-cut authority levels according to sanctions for various transactions.
Commensurate to the authority vested, responsibility must be extracted. The existence of
authority levels results in a review of the operations of subordinates.

Objectives of Internal Check

There are several objectives of the internal check. They are given below:

To minimize the possibility of error, fraud, and irregularity.

To prevent the misappropriation of cash and goods.

To allocate duties and responsibilities to every clerk in the organization.

To ensure an accurate recording of all business transactions.

To enhance the efficiency of the clerk in the organization.

To exercise moral influence over the staff member.

To prepare a final account with ease and efficiency.

VII . AUDIT CHECKS

Internal audit checks how well a company maintains operational efficiency and manages
accounting processes while complying with its standard rules and regulations. Conducting audits
from time to time ensures the firms are strict enough in following the administrative
fundamentals and sticking to a maximum accuracy rate so far as financial reporting is concerned.

Internal audit checks how well a company maintains operational efficiency and manages
accounting processes while complying with its standard rules and regulations. Conducting audits
from time to time ensures the firms are strict enough in following the administrative
fundamentals and sticking to a maximum accuracy rate so far as financial reporting is concerned.

IX. Internal audit

Internal audits evaluate a company’s internal controls, including its corporate

governance and accounting processes. These types of audits ensure compliance with laws and
regulations and help to maintain accurate and timely financial reporting and data
collection. Internal auditors are hired by companies who work on behalf of their management
teams.

X. What is the audit procedure?

Audit procedures are the processes and methods auditors use to obtain sufficient,
appropriate audit evidence to give their professional judgment about the effectiveness of an
organization's internal controls.

XI. Vouching

“Vouching means the inspection of receipts with the transactions of a business together
with documentary and other evidence of sufficient validity to satisfy an auditor that such
transactions are in order, have been properly authorized and are correctly recorded in the books.”

OBJECTS OF VOUCHING

1. All transactions have been recorded in the books of accounts and nothing has been left.

2. All entries recorded in the books of accounts are supported by documentary evidences which
are available in the business.

3. No transaction which is not connected with the business has been recorded.

4. All transactions are properly authenticated by a responsible person.

Vouching helps in:

1. Detect errors and frauds

2. Know the authenticity of transactions

3. Find unrecorded transactions

4. Ensures genuineness of the transactions

XII. VERIFICATION

“Verification is the proof of accuracy of extension, footings, posting, existence and ownership
of assets.”

Verification of assets

“Verification of assets is a process by which the auditor substantiates the accuracy of the right-
hand side of the Balance Sheet, and must be considered as having three distinct objects :

(a) the verification of the existence of assets

(b) the valuation of assets and

(c) the authority of their acquisition”.

XIII. VERIFICATION OF LIABILITIES

Verification of liabilities is as important as assets. If any liability omitted or overstated or

understated in the Balance Sheet then Balance Sheet would not show true and fair view of the
state of affairs of the business. Therefore the auditor must verify that the liabilities stated in the
Balance Sheet are in fact payable, accurate, related to and exist in the business.

The auditor verifies liabilities also along with assets and for doing so he has keep the following
points into consideration:

1. To verify the existence of liabilities shown in balance sheet and liabilities shown in the
balance sheet have arisen out of business operation.

2. To verify that liabilities as shown in the balance sheet are actually payable.

3. To verify the correct value of such liabilities.

4. To verify that all existing liabilities are actually included in the account and doubtful liabilities
should not be included in the actual liabilities.

5. To verify the adequacy of disclosure.

 XIV. What is a company auditor?
An auditor is a person or a firm appointed by a company to execute an audit. To act as an
auditor, a person should be certified by the regulatory authority of accounting and auditing or
possess certain specified qualifications.

XV. Qualifications for Auditors:

 In order to qualify as an auditor for a company in India, an individual must be a Chartered

Accountant (CA) in practice or a firm of Chartered Accountants. The Chartered Accountant in
practice must hold a valid certificate of practice issued by the Institute of Chartered Accountants
of India (ICAI).
 The individual or firm must not have any disqualification specified under the Companies Act,
2013. This means that they should not be facing any disciplinary proceedings or have been
debarred by ICAI from practicing as a Chartered Accountant.

XVI. Disqualifications for Auditors:

The Companies Act, 2013 lays out several disqualifications for auditors in India. These
disqualifications are intended to ensure that the auditor is independent and objective in their
audit.

 An individual cannot be an officer or employee of the company or its subsidiary. This is to avoid
any potential conflicts of interest that may arise if the auditor is also an employee of the
company.
 An individual cannot hold any security of the company or its subsidiary, except through a trustee
or nominee. This is to avoid any potential conflicts of interest that may arise if the auditor holds
securities in the company.
 An individual cannot be a promoter or director of the company or its subsidiary. This is to avoid
any potential conflicts of interest that may arise if the auditor is also a decision-maker in the
company.
 An individual cannot have any pecuniary interest in the company or its subsidiary, except as a
shareholder or creditor. This is to avoid any potential conflicts of interest that may arise if the
auditor has a financial interest in the company.
 An individual cannot have been convicted of any offense or found guilty of any fraud or
misfeasance in connection with the promotion or formation of any company. This ensures that
the auditor has a good reputation and is not involved in any illegal activities.
 An individual cannot have been a partner or an employee of the current auditor in the preceding
three years. This is to avoid any potential conflicts of interest that may arise if the auditor has
recently worked with the current auditor.
 An individual cannot be a partner of an audit firm that has been debarred from auditing any
company by ICAI. This ensure the auditor's firm is not debarred by the regulatory body.
 An individual cannot be an individual auditor of more than 20 companies. This limit is to ensure
that the auditor does not take on too many clients and is able to provide adequate attention to
each one.

XVII. Appointment of an auditor

The manner of appointment of an auditor is as follows: Appointment by Board of
Directors: The Board of Directors shall appoint the first auditor within 30 days of the registration
of the company. Appointment by Members: The members of the company shall appoint the
subsequent auditors at every AGM(Annual general meeting)

XIX. Rotation of Auditor:

terms of five consecutive years. Therefore, the rotation of the statutory auditor is applicable to all
listed companies and any other company or class of the company as may be prescribed.

What is removal of company auditor?

An auditor of a company may be removed by resolution of the company at a general
meeting only if a notice of intention under section 329(1A) has been given to the company.

Remuneration of the auditor

The remuneration of the auditor of a company shall be fixed in its general meeting or in such
manner as may be determined therein:
1) Provided that the Board may fix remuneration of the first auditor appointed by it.
(2) The remuneration under sub-section (1) shall, in addition to the fee payable to an auditor,
include the expenses, if any, incurred by the auditor in connection with the audit of the company
and any facility extended to him but does not include any remuneration paid to him for any other
service rendered by him at the request of the company.

Rights and Duties of Company Auditor

1. Right of access to books of account of Vouchers:

An auditor of a company has a right of access to the books of accounts and vouchers of
the company whether they are kept at the head office of the company or elsewhere.

2. Right to examine the cost records:

An auditor of a company has a right to examine the cost records along with the
quantitative records relating to production, sales, stocks etc.
3. Right to obtain information and explanations:

An auditor of a company has a right to obtain from the directors and officers of the
company such information and explanation as he may think necessary for the performance of his
duties as an auditor.

4. Right to correct any wrong statement:

An auditor of a company has a right to correct any wrong statement made by the
Directors relating to the accounts to be laid before the company in the general meeting.

5. Right to comment on the inadequacy of the accounting system in his report:

If the system of maintaining accounts is inadequate, he can advice the directors to amend
the system of accounting.

6. Right to visit branches:

The auditor of the company can visit the branch and examine the books and accounts and
vouchers at the branch.

7. Right to receive notice and other communications of general meeting:

An auditor of a company has a right to receive notice and other communications relating
to any general meeting, in the same way as a member of the company.

8. Right to attend the general meeting of the shareholders

An auditor has the right to attend every general meeting of the shareholders.

9. Right to speak at the general meeting:

An auditor of a company has a right to speak at a general meeting where his certified
accounts are discussed.

10. Right to sign the audit report: -

An auditor has the right to sign the audit report.

11. Right to report to the members of the company: -

An auditor has a right to report to the members of the company, if the accounts audited
by him show an unsatisfactory state of affairs.
12. Right to report to the members of the company: -

An auditor has a right to report to the members of the company, if the accounts audited
by him show an unsatisfactory state of affairs.

13. Right to be indemnified: -

An auditor of a company, being an officer of the company, has a right to be indemnified

out of the assets of the company, for any liability incurred by him in defending himself against
any proceedings by the company.

14. Right to receive any remuneration for his audit work: -

An auditor of a company has a right to receive remuneration for his audit work provided
he has completed the work which he undertook.

15. Auditor’s right of lien: -

An auditor has particular lien on the books of accounts audited by him for nonpayment of
audit fees.

Duties and Responsibilities of a Company Auditor :

The various duties of an auditor of a company can be grouped into four categories. They are:

Statutory Duties: - Statutory duties refer to the duties imposed by the statute, i.e., by the
Companies Act. The various statutory duties of an auditor under the Companies Act are:

(1) Duty to make certain enquiries: - An auditor of a Company should enquire:

1. Whether loans and advances have been properly secured.

2. Whether loans and advances have been shown as deposits.

3. Whether the transactions of the company are not prejudicial to the interests of the company.

4. Whether the personal expenses have been charged to revenue account.

(2) Duty to Report: - An auditor of a company should make a report to the shareholders on the
accounts examined by him and balance sheet and profit and loss account.

(3) Duty to comply with the directives of the Central Government: - The Central has been
empowered to issue necessary directives to the auditors of certain companies to give specific
reports on certain matters. When the central government issues any such directions, the auditors
are required to comply with those directives.
(4). Duty to sign his audit report

(5). Duty to give a statement in prospectus: - A prospectus issued by an existing company

should contain a statement from the auditor.

(6) Duty to certify the statutory report.

(7). Duty to certify the declaration of the solvency of the company.

(9). Duty to assist Central Government in connection with prosecution.

(10). Duty to make report on public deposits. The important contractual duties of an auditor are:

1. An auditor has a duty to see that his appointment is in order.

2. He must perform all the duties under common law

Duties imposed by legal or court decisions: -

1. An auditor must make himself fully acquainted with his duties under the Companies Act and
the Articles of Association of the company.

2. He must not confine himself only to verify the arithmetical accuracy of the balance sheet but
should also enquire into its real accuracy and fairness.

3. He should satisfy himself about the valuation of assets.

4. He should perform his duties with great care and skill.

5. It is the duty of a company auditor to check the stock properly.

Duties arising out of Professional Etiquette: -

1. Every auditor should carry on his duties with due regard to public interest.

2. An auditor should comply with the rules and regulations formulated by the Institute of
Chartered Accountant of India.

3. He must be honest, sincere, technically competent and independent.

4. He should disclose full and fair information about the working and financial position of the
company.
Disqualification of Auditor

According to Provisions of Section 141(3) of the Companies Act, 2013 , following persons shall
not be eligible as auditor of the company: ‐

a) A body corporate other than LLP registered under the LLP Act, 2008

b) An officer or employee of the company.

c) A person who is partner or who 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/interest in the company or its subsidiary or of its holding or associate
company or subsidiary of such holding company. It has been further provided that an relative
may hold security or interest in the company of face value not exceeding one lac rupees.

(ii) is indebted to the company or its subsidiary, or its holding or associate company or
subsidiary of such holding company, in excess of Rs. 5 lacs rupees

(iii) has given guarantee or provide any security in connection with the indebtness of any third
person to the company or its subsidiary, or its holding or associate company or a subsidiary of
such holding company for value in excess of Rs. 1 lacs.

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. Here the business relationship shall be construed as any
transactions enter into for a commercial purpose except: ‐

a) Commercial transactions which are in the nature of professional services permitted to be

rendered by an auditor or audit firm by the professional bodies regulated such members.

b) Commercial transactions which are in ordinary course of business of the company at arm’s
length price as customer.

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

(i) who is in full time employment elsewhere or

(ii) a person or a partner holding appointment as its auditor is at the date of such appointment or
reappointment holding appointment as auditor for more than 20 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 or specialised services in reference to provision of
Section 144 of the Companies Act, 2013.