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Appointment of statutory auditor

srinivas (final) (33 Points)

17 November 2013

Is the internal auditor of the company appointed as the statutory auditor of the same company for the next year?

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9 Replies

Amrit Dalmia (Indirect Tax Consultant) (912 Points)
Replied 17 November 2013

May be appointed provided the Internal Auditor resigns.

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ravali cheela (student) (58 Points)
Replied 17 November 2013

ya, may be internal auditor can act as an extarnal auditor of a company.

Deepika (CA FINAL STUDENT) (40 Points)
Replied 18 November 2013

No.. Internal auditor cannot b d statutory auditor of d co

Ankur Garg (Company Secretary and Compliance Officer) (114783 Points)
Replied 18 November 2013

Internal Auditor acting as Statutory Auditor:

Where an Internal Auditor is an employee of the company, he is disqualified for appointment as a Statutory Auditor. But where a company employs an outside firm to conduct its Internal Audit, the Internal Auditor does not become an employee of the company. Even in such a case, the Internal Auditor cannot be appointed as a statutory Auditor, because it will not be possible for him to give as independent and objective report under section-227 read with CARO, 2003.

As per CARO, 2003 Statutory Auditor has to state in his report whether there is adequate Internal Control System in the company….

Hope now you can interpret yourself….

To conclude I would say in no case internal auditor can be appointed as a statutory auditor. If you still have a doubt then please post it.

Best Regards

2 Like

Amrit Dalmia (Indirect Tax Consultant) (912 Points)
Replied 18 November 2013

Agreed Sir, but can't the Internal Auditor be reappointed as a Statutory Auditor in the next year after resigning as an Internal Auditor in the current year ?

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Ankur Garg (Company Secretary and Compliance Officer) (114783 Points)
Replied 18 November 2013

Originally posted by : Amrit Dalmia
	Agreed Sir, but can't the Internal Auditor be reappointed as a Statutory Auditor in the next year after resigning as an Internal Auditor in the current year ?