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Appointment of statutory auditors

Aishwarya Subramanian (Article Student) (38 Points)

25 November 2010

Hello

Can anyone tell me if it is valid for a Statutory Auditor of a Private Trust to become a member of the Executive Committee of the same.

Please reply soon.

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8 Replies

Yogesh Shah (Managing Corporate Finance) (1051 Points)
Replied 25 November 2010

HI Dude,

IN MY OPINION, he can't be.

I am replying this on basis of Professional Ethics. In that it is mentioned that if independence of an Auditor is hurt (by any means) he shall leave the engagement. For statutory auditor by being member of executive committee also, independence while carrying out audit of same trust will be difficult. Im waiting for other views.

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Ankur (Ipcc student) (332 Points)
Replied 25 November 2010

it is never possible

because he will be called not independent doing this

because since he is a member of executive commitee ,it can be clearly seen that he has the power to take decisions

lets see the other comments

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Pawan Kr. Tomar (CA) (169 Points)
Replied 25 November 2010

It will come under other misconduct of Ethics, if accept to become a part of committee

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Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 25 November 2010

NO he Cannot

1 Like

R.Sankaranarayanan (Indirect Tax Executive) (163 Points)
Replied 26 November 2010

Agree with Mr. Ankur.

If he gets appointed so, it will affect the auditing priciple - ''Independence of the Auditor''

Further in decision making, there may be the influence of personal bias.

Thus, he cannot be appointed so.

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amit kumar goel (articl) (32 Points)
Replied 27 November 2010

BY DOING SO HE WILL BECOME OFFICER OF THE COMPANY WHICH IS PROHIBITED UNDER THE PROVISIONS OF SEC. 226 OF THE COMPANY ACT 1956. REST YOU KNOW WHAT ARE THE CONSEQUENCES....