10 July 2011
Let us assume X and his son Y, both are CA. X is working as a Partner in Firm A and his son is practicing as a Proprietor in Firm B. Firm A and Firm B are purely independent. Suppose X is statutory Audit of Company C Ltd. in capacity as a partner of Partnership Firm. Can Y, son of X can accept Internal Audit in company C Ltd. Note: X and Y are working independently and Y is having no relation with the Partnership Firm. In view of Code of Professional Ethics, Auditing Standard, Company Act or any other Notification/Circular etc Can Y accept as a Internal Auditor of C Ltd. or not.
11 July 2011
Yes the same is possible as both re not the partners in the same firm and the assignment of internal audit is given to a independent auditor and the statutory audit is given to another independent firm.
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