A Question Regarding Auditor

Operation auditing is nothing but if the skills of the audit are used in any operational areas other than accounting area then it will be treated as operational auditing. e.g. production department,sales department,marketing department,sales departmrnt.

So my question is that if Mr.A is doing operation audit of ABCltd. and ABCltd. is going to appoint them? Is it valid?

Can a statutory auditor will hold qualification even if he does operational audit of the similiar company?

Thank you everyone whoaoever replies me.

Replies (1)

Pujit,

 

I think there are no statutory restrictions as such for such an appointment. But in view of professional code of conduct such an appointment shud not be accepted by an auditor. Operational auditor is similar to be an internal auditor. And also all the more its the duty of the statutory auditor to have a gud idea of the operations of the client.

 

Wait 4 sme expert answers though......!!!:)

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