Can an Internal Auditor be a Shareholder of a Company ?
$wap$
(Assistant Auditor)
(189 Points)
Replied 27 May 2010
Assuming that "shareholder of the company which he audits."
Sec 226(3) - A body corporate, an officer or employee in the auditee company, any partner or employee of an officer or employee in the auditee co., any person who is indebted to the auditee co. In excess of Rs.1,000/-, any person holding any security that carry voting rights.
There is no bifurcation between statutory and internal auditor in the section. Thus the provisions are equally applicable for the internal auditor.
regards,
Kumar
(Article)
(922 Points)
Replied 28 May 2010
No an internal auditor cannot be an shareholder in a company
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
