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Manmohan ACA, CS (Querist)

03 September 2009 Can a person be appointed as statutory Auditor(SA) if he is an part time employee of the Firm which is conducting cost audit
?

Ajay Mishra

Ajay Mishra (Expert)

05 September 2009 Dear Mr. Manmohan

As per Section 226(3) (b) of the Companies Act, 1956 a person who is an officer or employee of the company shall not be qualified for appointment as Statutory Auditor of the Company.

Manmohan ACA, CS

Manmohan ACA, CS (Querist)

05 September 2009 you can not understnad my question .

Suppose XY and associates is appointed as Cost accoutant of a company. Mr. S who is part time employee of XY and associates can be appointed as statutory Auditor of the company.

How do employee- employee relation came in ur mind ?

Ajay Mishra

Ajay Mishra (Expert)

05 September 2009 Dear Mr. Manmohan

Person not to be appointed as the Cost Auditor (Section 233B(5)

Following persons can not be appointed as an auditor for conducting the audit of the cost accountant of a company:-
1. A person refereed to in section 226(3) and 226(4)
2. A person appointed under section 224 as an auditor of a company.

As per the above section u can says vic a versa that a person who is appointed as cast auditors can not appoint as statutory auditors.

Views of other experts solicited,

Regards

Manmohan ACA, CS

Manmohan ACA, CS (Querist)

05 September 2009 even now u can not understand my question

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