Appointment of company as internal auditor

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vinod

vinod (Querist)
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14 October 2009 Whether a company can be appointed as an internal auditor of a company

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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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

CA. Vinod Pandey (Expert)
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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.

Ankur Garg

Ankur Garg (Expert)
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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.

vinod

vinod (Querist)
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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

Ankur Garg (Expert)
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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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