Aishwarya Subramanian (Article Student) (38 Points)
25 November 2010Hello
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.
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.
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
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
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.
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....
Batul
(Article assistant)
(207 Points)
Replied 14 January 2011
No he cannot
It is against professional ethics
brijesh Kumar Gujrati
(Chartered Accountant)
(20 Points)
Replied 27 January 2011
| Originally posted by : Aishwarya Subramanian | ||
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it is miscounduct of our professional ethics |
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