The following conditions disqualify a person from being appointed as an auditor in a private company under Section 270 of the Companies Act, 1963 (Act 179):

• An Officer of the Company: A person who is an officer of the company in question or any of its associated companies is disqualified from being appointed as an auditor.
• Employment Relationship: A person who is a partner of or in the employment of an officer of the company or of any associated company is disqualified.
• Undischarged Bankrupt: An undischarged bankrupt, unless he has been granted leave to act as an auditor of the company concerned by the court that adjudged him bankrupt.
• Person Found of Unsound Mind: Any person found by a competent court to be a person of unsound mind is disqualified.

Additional conditions include:

• Infants: A person who is an infant is disqualified.
• Corporate Entities: A body corporate cannot be appointed as an auditor except in the manner provided by law.
• Fraudulent Practices: Any person who is subject to restraining orders due to fraudulent practices is disqualified from acting as an auditor.

(2 marks for 4 points = 8 marks)