whether for secreterial audit & internal audit , auditor can be apointed for more than 1 year at a time .
10 Replies
Ankit Kumar
(student- cpt)
(32 Points)
Replied 30 November 2017
an auditor is appointed at the GM of the company. and a GM is conducted for the period of one financial year only.
however you can say that when in an GM no auditor is appointed, then the existing auditor shall continue to operate as the auditor of the company.
REFER TO SEC 130(9), 139(10), 139(11) OF THE COMPANIES ACT
however you can say that when in an GM no auditor is appointed, then the existing auditor shall continue to operate as the auditor of the company.
REFER TO SEC 130(9), 139(10), 139(11) OF THE COMPANIES ACT
Divakar
(Student CA Final )
(11857 Points)
Replied 30 November 2017
@ Ankit he is asking for internal auditor and secretarial audit... And not statutory auditor... Both can't be appointed for more than one year... However statutory auditor can be appointed for the term of 5 yrs or 10 yrs as the case may be... However in every AGm Ratification is done by members
Divakar
(Student CA Final )
(11857 Points)
Replied 30 November 2017
Intwrnal auditor governed under the provisions of 138 and secretarial audit under section 204 of company act 2013
Divakar
(Student CA Final )
(11857 Points)
Replied 30 November 2017
Section 139 not applicable in this case
Manjula Moorthy
(Qualified CS CA Finalist)
(209 Points)
Replied 01 December 2017
As per Section 138(2), the scope, function and periodicity of Internal Auditor has neither been defined in Companies Act nor specifically prescribed in the Rules. Moreover if he is appointed as the employee of the company then its obvious his tenure would be more than 1 year by default..
Divakar
(Student CA Final )
(11857 Points)
Replied 01 December 2017
@ Manjula agree... Scope, functioning, periodicity and methodology for conducting the internal audit decided by audit committee...
Divakar
(Student CA Final )
(11857 Points)
Replied 01 December 2017
Refer rule 13(2) of the companies(Accounts) rules 2014
Manjula Moorthy
(Qualified CS CA Finalist)
(209 Points)
Replied 01 December 2017
In case of Secretarial Auditor, initially they are appointed for a tenure of 1 year, thereafter as per the decision of the Audit Committee/Board...This again is not specified..
Ankit Kumar
(student- cpt)
(32 Points)
Replied 01 December 2017
sorry for that
in case of internal auditor companies act, 2013 does not provide any such point.
this means auditor can b appointed
in case of internal auditor companies act, 2013 does not provide any such point.
this means auditor can b appointed
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