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1) A person(individual) shall be eligible for appointment as an auditor of a company only if he is a chartered accountant in practice as per Chartered Accountants Act 1949

2) A firm or limited liability partnership (LLP) where of majority of partners are Chartered Accountants practicing in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company.

Note: Where a firm including a limited liability partnership is appointed as an auditor of a company, only the partners who are chartered accountants (in practice) shall be authorised to act and sign on behalf of the firm.

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