Appointment of company as internal auditor
This query is : Resolved
14 October 2009
Whether a company can be appointed as an internal auditor of a company
CA. B.SRINIVASULU
(Expert)
14 October 2009
As per companies act it is not allowed. But for management review purposes it can be done which will be exclusively utilised by the top management.
CA. Vinod Pandey
(Expert)
15 October 2009
Exactly.
AS per sec.226 of the companies act body corporate can not be appointed as auditor.
In other word, Where it is required by any law to appoint auditor then body corporate can not be appointed. In case of own requirement, as Mr. Srinivasulu also told, it can be do so.
AS per sec.226 of the companies act body corporate can not be appointed as auditor.
In other word, Where it is required by any law to appoint auditor then body corporate can not be appointed. In case of own requirement, as Mr. Srinivasulu also told, it can be do so.
Ankur Garg
(Expert)
15 October 2009
Disqualifications mentioned by section 226 are pplicable only to statutory auditor and not to internal auditor.
In fact regarding appointment of internal auditor company law is silent.
But i am not sure about ICAI internal manuals.
From company act point of view a company can be appointed as internal auditor.
In fact regarding appointment of internal auditor company law is silent.
But i am not sure about ICAI internal manuals.
From company act point of view a company can be appointed as internal auditor.
15 October 2009
It means difference of opinion exist. Companies like Protiviti, Axis etc. are being appointed as Internal Auditor as far as i know
Ankur Garg
(Expert)
15 October 2009
YES. Various companies are doing the Internal Audit these days. As there is no restriction in companies act.
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