(1) Any of the following persons or a firm, company or organization of which such a person is a founder or a shareholder cannot be appointed as an auditor of a bank or financial institution:- (a) the founder, director, executive head or member of his family of a bank or financial institution, (b) ) Officers, employees or internal auditors of banks or financial institutions (c) Persons working as partners with directors, chief executives or employees of banks or financial institutions, (d) Debtors of banks or financial institutions, persons with significant ownership or associated persons or persons having financial interests Individuals, (e) Individuals involved in adultery in Nepal or abroad, (f) Individuals, firms, companies or organizations that hold one percent or more shares of the relevant bank or financial institution, (g) Convicted by the court for a criminal offense for a period of five years after serving the sentence (h) A person who is ineligible to be appointed as an auditor according to the prevailing law. (2) If any person who has been appointed as an auditor of a bank or financial institution is found to be ineligible according to sub-section (1), the appointment of such person shall be deemed to be automatically cancelled.