There is a Company ABC. It has three subsidiaries 1, 2 & 3.
XYZ is Internal Auditor of Subsidiary 2.
QUESTION
Can XYZ be Statutory Auditor of any other Subsidiary say 1 or 3?
I would be grateful if you can support your answer.
Parag Goel (Job Hunting) (24 Points)
16 July 2010There is a Company ABC. It has three subsidiaries 1, 2 & 3.
XYZ is Internal Auditor of Subsidiary 2.
QUESTION
Can XYZ be Statutory Auditor of any other Subsidiary say 1 or 3?
I would be grateful if you can support your answer.
Sharad Saini
(Student)
(286 Points)
Replied 16 July 2010
no he can not be appointed as statutory auditor...
because as per sec 226(3) of the companies act,1956, a person can not be appointed as auditor of a company if he is disqualified from appointment as auditor of any of its subsidiary or holding co..