INTERNAL AUDITOR

Internal Audit 2070 views 7 replies

can internal auditor can be appointed as an Statutory auditor of Limited Company?

pls send your answer to me on cavickyshah @ gmail.com

 

Thanks

vatsal shah

Replies (7)

No,it is not possible

HHHHHHHHHiiiiiiiiii VATSAL...

It is not possible...

No  IT IS NOT POSSIBLE REFER CARO REPORT

Shah:

The main concept of bringing the internal auditor is to have additional control on the transaction to result in accuracy and authencity,with absolute independence.

Hence,the internal auditor is brought in by the management and not by the statutory auditor,if for instance the Int.Ar is brought in by the St.Ar,there always lies a question  of the its accuracy and independence.

However,the reports generated by the Int.Ar MAY be considered by the St.Ar.

No ,No chance............

Originally posted by :VATSAL SHAH
" can internal auditor can be appointed as an Statutory auditor of Limited Company?
pls send your answer to me on cavickyshah @ gmail.com
 
Thanks
vatsal shah
"


 

Please put clear questions ....

An Internal Auditor of a Company can be appointed as Statutory Auditor of another Company. But Internal & Statutory auditor of a Company can not be a same person. Because Statutory Auditor need to comments on internal control in his audit report as per CARO.

Company at its AGM recruits its Statutory Auditor  -- Section 224 of Companies Act. Whereas Internal Auditor can be recruited by the mangement of the Company - No clause in Companies Act.

I have not seen any clause in Companies Act which says internal audit is compulsory for any types of Companies (Overlooking CARO clause no (iv) ), so there are no link between internal audit & statutory audit except the CARO reporting of Statutory Auditors.


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