Meaning of such other professional u/s 138

Internal Audit 598 views 3 replies

Sandeep Koonaparaju

Partner

39 Points Joined June 2010

Hello everyone,

As per section 138, the Board of a company may decide to appoint 'such other professional' as internal auditor. I have couple of questions here:

1. Does this mean that the internal auditor in such cases need not be a chartered accountant or a cost accountant?

2. Will the standards on internal audit issued by ICAI be binding on 'such other professional' conducting the internal audit?

Thanks

Sandeep

Replies (3)

AMIT KAPOOR

SELF EMPLOYED

491 Points Joined February 2009

yes he may be even the non ca employee of the company as decided by the board and will not be bounded by SIA and will conduct internal audit using these SIA as recomandatory to him and make his own report

dileep bandi

Student

159 Points Joined April 2017

1 . Internal Auditor need not be a chartered account that means u can appoint any person as a internal auditor.

2. Standard issued by ICAI will not applicable for "other professionals" conducting the internal audit.

Deepak

student

36 Points Joined September 2014

Yes, he may or not may be ca for conducting internal audit u/s 138 of companies Act 2013.. Any person who is authorised by the Board of Director of the company he can be the itnernal auditor of the company . and no any internal audit standards apply on it which is issued by ICAI.