Yes. The Companies Act does not confine a statutory auditor to the city of the registered office. A Chartered Accountant in practice, holding a certificate of practice, who is eligible and independent under section 141, may be appointed auditor of a company in Gorakhpur, Ayodhya or elsewhere. Practical fieldwork — inventory at GIDA, cash at a hotel — still has to be done at the place the books and the stock actually are. See how to appoint a statutory auditor.
Answer
Can a Chartered Accountant in Basti audit a company in Gorakhpur?
Yes. Appointment follows the Companies Act, not municipal limits.