Internal auditor appointment


This query is : Resolved 

Quick Summary
This discussion examines the permissibility of a chartered accountant, who serves as the statutory auditor for a company, also undertaking its internal audit. The situation becomes complex when the accountant's wife and cousins are directors of a professional company through which the internal audit would be conducted, although the accountant is only a shareholder, not a director, of this professional firm. The consensus leans towards this arrangement not being allowed due to potential conflicts of interest.

08 August 2020 Practicing chartered accountant who is a statutory auditor of the company, can do internal audit of that company through company/llp in which his wife & cousins are directors (That ca is not a director of that professional company. he is shareholder only)

09 August 2020 I do not think it should be allowed...

09 August 2020 I do not think it should be allowed...

c.bakshi (Expert)
10 August 2020 NO, THE INTERNAL AUDITOR IS NOT ALLOWED TO DO AUDIT IN THE ABOVE SAID SITUATION


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details