Statutory Auditors role and responsibilities

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Abc pvt Ltd has appointed xyz as statutory Auditors. Lmn Ltd is parent Co of Abc pvt Ltd, can parent company allot any work / assignment to such xyz Auditors??
If yes, then boundaries of such assignment in terms of disclosure.
If no, then relevant provision.
Replies (5)

No such assignment can be made under the law. Even a holding company cant assign work to its auditor it is totally written in the terms of engagement which is  mutually agreed by both the parties and the scope of which can subsequently be altered with both parties consent. And if the scope of this engagement is not acceptable by the auditor he can quit. Also as per the law there is seperate power and duties of auditor of both holding and subsidiary company. The thing is there should be tight cordination between both holding and subsidiary company in respect of their audit matter in helping auditor to give his opinion in the audit report. After all what is audit this is just to give opinion on true and fair view of what is right and  what is wrong in the financial statement. SO i think there is no need to give such assignment/work.

Still my query is not resolved, I still need more information on this.
As per Section 141(3)(i) of the companies act,2013
Auditor cannot render any of the services as provided in section 144 to That company, its Subsidiary or its Holding company.

Services as per Section 144:
Internal Audit
Investment Advisory
Investment Banking
Acturial
Management Services
Design and Implementation of Financial Information System
Rendering of Outsourced Financial Services (This one is critical)
Other as may be prescribed ( but not yet prescribed)
Here the point is that the Other services are not specifically informed but we have to assume it according to section. Am I correct?

why u assume as it is mentioned that any other kind of services AS MAY BE PRESCRIBED  in section 144 of company act 2013


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