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CA INTER COMPANY AUDIT
Chartered accountant who is the director of a subsidiary company can he be the auditor of its holding company ?
Replies (13)
no he can't because there should b not any kind of business relationship with company by auditor
but there isn't a business relationship
director of subsidiary is related with holding company
Where in law
practically yes but legally ?
practically yes but legally ?
I think it's implied provision because directly and indirectly director is also employee of holding company so. and employee of holding co can't do auditing of holding,subsidiary,
directors are not employees
there is n employer employee relationship
there is n employer employee relationship
holiding company can control the composition of board in subsidiary company it means holding company has Large interest in subsidiary company. so if director of holding company done audit of subsidiary company. so it can't say fair conduct of audit
no no
my question is reverse
Director of subsidiary company can he do the audit of holding company
yes there is a higher chance of misrepresentation but where does the law say such thing
my question is reverse
Director of subsidiary company can he do the audit of holding company
yes there is a higher chance of misrepresentation but where does the law say such thing
as per section 144 auditor can't provide management services to the company in which he proposed to b appointed as auditor. now holding company hold large part of control over the subsidiary so the director of subsidiary is manage the affairs of subsidiary company. so it also effect the interest. but clear not specified In the law
Sec. 144 is for auditors appointment who can't do those services
My query is whether director of a subsidiary company be appointed as director of a holding co.
My query is whether director of a subsidiary company be appointed as director of a holding co.
you have changed your question check your first question
I am sorry the previous one was wrong
it was actually
My query is whether director of a subsidiary company be appointed as an auditor of a holding co
it was actually
My query is whether director of a subsidiary company be appointed as an auditor of a holding co
see my friend I am Also student and I know that you tries to find out fault in law but ethically also it is not possible because auditing should be done by those who are not Interested. because it requires fair and unbiased auditing. so as per my understanding director of subsidiary company can't be appointed as auditor of holding company
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