Audit of holding and subsidiary

Can X & Associates be the statutory auditor of Holding Company PQR Pvt Ltd. and his subsidiary ABC Pvt Ltd. as well?

 

Replies (3)

Its totally depends on Letter of engagement bewteen Firm and Company...

if there is no such clause in letter of engagement then you should get confirmation from Company.

Yes the company affirms for the audit  of holding and subsidiary company. Section 226 of the companies act, 1956 confirms the same. I am refering the old act because we have been appointed as a statutory auditor for FY 2013-2014 on which old act is implied.

So i will take the appointment letter for the holding and subsidiary company as well for the confirmation and for the intimation to the ROC as well.

Is my interpretation right?

Yeah..

We can be a statuatory auditor of holding and subsidiary company.

Both a place statuatory auditor or both place internal auditor is no problem.

One place statuatory auditor and another place internal auditor only will be the problem.

 

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