Appointment of auditor
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 July 2013
Hi Everybody
I want clarification regarding appointment of Internal Auditor.The Situation is as below.
Mr.V is a Statutory auditor of M/s.XYZ P.Ltd has Appointed as Internal Auditor of M/s.ABC P.Ltd which is not either Holding Company or Subsidiary of M/s.XYZ P.Ltd but the Management of both the companies are Same.whether appointment of Mr.V as Internal Auditor of M/s.ABC P.Ltd is Valid?
I want clarification regarding appointment of Internal Auditor.The Situation is as below.
Mr.V is a Statutory auditor of M/s.XYZ P.Ltd has Appointed as Internal Auditor of M/s.ABC P.Ltd which is not either Holding Company or Subsidiary of M/s.XYZ P.Ltd but the Management of both the companies are Same.whether appointment of Mr.V as Internal Auditor of M/s.ABC P.Ltd is Valid?
Ajay Mishra
(Expert)
28 July 2013
Hi
As per my views, the statutory auditor is free to appoint as internal auditor of the ABC Limited.
Generally the restriction is that an statutory of the company can not be an internal auditor of the company. The reason is that the internal auditor is treated as employee of the company and its any view could be bias and can be lack of Independent decision.
But it not restrict to appoint in other company having the same management.
As per my views, the statutory auditor is free to appoint as internal auditor of the ABC Limited.
Generally the restriction is that an statutory of the company can not be an internal auditor of the company. The reason is that the internal auditor is treated as employee of the company and its any view could be bias and can be lack of Independent decision.
But it not restrict to appoint in other company having the same management.
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