Audit under same management

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Can internal auditor of a holding company conduct statutory audit of its subsidairy company?? If he can' t then where is it specifically mentioned in professional ethics or under companies act 1956.
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Dear Prithwiraj

Internal auditor cant be a statutory auditor of the same company.

Internal audit is basic requirement for effective internal control as per SAs. You can refer to SA 265. Whereas if we talk about statutory audit then it is basically done to approve all statutory compliance under various law.(such as Tax audit can only be done by stat auditors etc.)

 

 


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