Section 31: Qualification of auditors.

(1) A person shall not be qualified for appointment as an auditor of a public enterprise for the purpose of this Act, unless he is a member of a body of accountants established, from time to time, by statute in Nigeria.
(2) A person shall not be appointed as an auditor of a public enterprise if -
(a) he is a director, officer or servant of the public enterprise; or
(b) he is a partner of or is in the employment of a director, officer or servant of the public enterprise; or
(c) he is a person or firm who or which offers to the public enterprise professional advice in a consultancy capacity in respect of secretarial; taxation or financial management of the public enterprise; or
(d) it is a body corporate, and for this purpose an auditor of a public enterprise shall not be regarded as a director, officer or a servant of the public enterprise.
(3) Notwithstanding the provisions of subsections (1) and (2) of this section, a firm is qualified for appointment as an auditor of a public enterprise, if all the partners are qualified for appointment as auditor of the public enterprise.
(4) No person shall act as an auditor of a public enterprise at a time when he knows that he is disqualified for appointment to that office and if an auditor of a public enterprise to his knowledge becomes so disqualified during his term of office, he shall vacate his office and give notice in writing to the public enterprise that he has vacated it by reason of that disqualification.
(5) A person who acts as an auditor in contravention of subsection (4) of this section or fails without reasonable excuse to give notice of vacating his office as required by that subsection is guilty of an offence and liable to a penalty of N500,000 and where the offence continues, to a penalty of N5,000 for every day during which the offence continues.