Internal auditor

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Can a Director of Subsidiary company act as Internal Auditor for its Holding Company?

Replies (13)

no he can not as per my knowledge

No as he has interest in the Holding company...

No, a director of a Subsidiary company can not Act as a Internal or Statutory Auditor of its Holding Company.

NOno

Reporting responsibilty in case of internal audit is to be done to  Director by Internal auditor, It sounds different as director is auditing for himself, Hence director cannot be act as a  auditor for the same companny....!!!!!!

refer https://icai.org/post.html?post_id=1442

Originally posted by : Suryakant Dubey

refer https://icai.org/post.html?post_id=1442

does 'Auditor' in that paragraph[in the link] also mean Internal Auditor ? 

He cannot (as it compromises his independence), as per the above post

 

Originally posted by : subramani

He cannot (as it compromises his independence), as per the above post

 

The last line in the paragraph in the above link is ''. In view of the above the Committee has decided that the auditor of a Subsidiary Company can’t be a Director of its Holding Company, as it will affect the independence of an auditor'' . 

What I am asking is reverse of it - can director of a Subsidiary company act as auditor for Holding company. And holding company may have interest on subsidiary company and not vice versa.

no director of subsidiary company can not be auditor of holding company

Originally posted by : Anushree

no director of subsidiary company can not be auditor of holding company

I am talking only in the case of Internal Auditor, not Statutory.

It would be nice if you offer some explanation.

Is there any Section reference ??? Employee can become an Internal auditor then why not Director ??

 

Hi Raju

As per my understanding , The Internal Auditor u r speaking of and the internal auditor srikanth is speaking of are different.

U r talking about Internal auditors who are part of company itself (employees) which the company appoints for smooth functioning and srikanth is asking about Internal Auditors to be appointed according to the Act.

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