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Purchase from auditee company by auditor

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This query is : Resolved

vraca96 (Querist)

30 July 2014 I want to know that if an auditor of company can purchase product or use services (not free)from the company , he is auditing.
is it ok.urgent view required.
v.k.g.
9997818686

Ankur Garg

Ankur Garg (Expert)

30 July 2014 Dear Sir,

As per my understanding if auditor purchase something from the company by paying market price of the product, then there is no problem at all and such transaction does not affect the independence of auditor under any law.

Kindly wait for the opinion of other experts.

Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

31 July 2014 Seems there is no harm, if a broader view is taken on section 141(3)(e) of the Companies Act,2013 read along with rule 10(4)(ii) of the Companies (Audit and Auditors)Rules,2014.

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