Llp as an internal auditor

This query is : Resolved

Kumar SV (Querist)
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19 July 2016 I have two questions:

1. Can an LLP having CAs as partners, but not holding COP, be appointed as Internal Auditor under Section 138 of the companies Act? the Act does not require the CA to be in practice for being an internal auditor as per my understanding..

2. Can an LLP with a CA and Lawyer as partners, be appointed as Internal Auditor, provided the CA partner signs the internal audit report?

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
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21 July 2016 Section 138 does not define who should be signing the internal audit report. LLP can be appointed as the internal auditor. It mentions Chartered Accountant. Thus Chartered Accountant need not be in practice.