Q.Which of the following is the essential formal (professional) qualification for a person to be appointed as the statutory auditor of a company in India?
(A) A postgraduate degree in Commerce
(B) Membership of the Institute of Chartered Accountants of India (ICAI) with a valid certificate of practice
(C) At least five years of experience as an accounts clerk
(D) A diploma in business management

Indian company law reserves the statutory audit role for one specific, recognised professional credential — not a general commerce degree or years of clerical experience alone.

Section h separates an auditor's qualifications into two levels: general personal qualities (honesty, vigilance, tact, sound knowledge, communication skill) that make someone GOOD at the job, and the formal professional qualification that the law actually requires before someone can be legally APPOINTED as a company's statutory auditor at all.

In India, that formal requirement is specific and non-negotiable: the person must be a practising Chartered Accountant, meaning a member of the Institute of Chartered Accountants of India (ICAI) who holds a valid certificate of practice. Where a firm is appointed as auditor rather than an individual, every partner of that firm who is practising in India must independently hold the same Chartered Accountant qualification. …

Students sometimes confuse the GENERAL qualities good auditors should have (which are broad, described in prose, and not legally mandatory) with the specific FORMAL qualification the law requires (a narrow, precise credential: ICAI membership + certificate of practice). A question asking …