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Appointment of auditor for cosolidated financial statement

661 views 1 replies

Amit

104 Points Joined June 2011

Dear All,

Can a parent company appoint another auditor for its consolidated financial statement even though it’s has a separate statutory auditor for financial statement? (Such statutory auditor has been appointed only for parent company not for its subsidiaries company)

Please let me know, is it feasible for the parent company to appoint a separate auditor under companies act, 2013 only for its consolidated financial statement.

Thanks in advance.

Warm regards

Amit Ghosh

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Yes, the company can appoint separate auditors for CFS. Section 129(4) provides that the provisions of the Act relating preparation, adoption and audit of the financial statements of a holding company shall, mutatis mutandis, apply to the CFS. It means similar procedure for appointment of auditor has to be followed for CFS also.