Internal auditor appointment

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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.

MADHAV UPADHYAY

MADHAV UPADHYAY (Querist)
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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)