Audit commitee

This query is : Resolved

Sanjay Dugar (Querist)
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23 March 2016 Hi,

As per section 177(7) of Companies Act 2013

'The auditors of a company and the key managerial personnel shall have a right to
be heard in the meetings of the Audit Committee when it considers the auditor’s report but
shall not have the right to vote.'

Does the word auditor here includes 'Internal Auditor' of the company??

If so, then if the report of Internal Auditor is discussed and some adverse comments are made by the management for the report then is it not mandatory for the Audit Committee to call and discuss the same with the internal auditor in the Audit Committee meeting??

Mandar

Mandar (Expert)
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31 March 2016 1) As per my view the provisions in the said scenario speaks about independent Auditors Report as enunciated in Section 134 of the ACT.
2) With reference to Sec 138 r/w Rule 13(2) of the Act , the Audit Committee or the Board formulates the scope , functioning & methodology of IA , thus in my view the IA reports to AC or BOD directors directly and would be well aware of the qualifications if any , they would take necessary steps for such qualifications