Can a Director of Subsidiary company act as Internal Auditor for its Holding Company?
Srikanth D (Occupied.) (168 Points)
17 March 2013Can a Director of Subsidiary company act as Internal Auditor for its Holding Company?
deepali agarwal
(Company Secretary)
(1289 Points)
Replied 17 March 2013
No as he has interest in the Holding company...
Kumar A. Ranjan
(Student)
(1588 Points)
Replied 18 March 2013
No, a director of a Subsidiary company can not Act as a Internal or Statutory Auditor of its Holding Company.
CA Suryakant Dubey
(CA )
(931 Points)
Replied 18 March 2013
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....!!!!!!
CA Suryakant Dubey
(CA )
(931 Points)
Replied 18 March 2013
Srikanth D
(Occupied.)
(168 Points)
Replied 24 March 2013
| Originally posted by : Suryakant Dubey | ||
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refer https://icai.org/post.html?post_id=1442 |
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does 'Auditor' in that paragraph[in the link] also mean Internal Auditor ?
Subramani
(Employed)
(198 Points)
Replied 01 June 2013
He cannot (as it compromises his independence), as per the above post
Srikanth D
(Occupied.)
(168 Points)
Replied 02 June 2013
| Originally posted by : subramani | ||
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He cannot (as it compromises his independence), as per the above post |
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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.
CA Anushree jain
(CA)
(1531 Points)
Replied 03 June 2013
no director of subsidiary company can not be auditor of holding company
Srikanth D
(Occupied.)
(168 Points)
Replied 04 June 2013
| Originally posted by : Anushree | ||
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no director of subsidiary company can not be auditor of holding company |
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I am talking only in the case of Internal Auditor, not Statutory.
It would be nice if you offer some explanation.
CA Mahesh
(CA)
(175 Points)
Replied 28 June 2013
Is there any Section reference ??? Employee can become an Internal auditor then why not Director ??
Akshata
(CA Final )
(324 Points)
Replied 06 July 2013
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.
CAclubindia
