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INTERNAL AUDITOR

CA.VATSAL SHAH (SERVICE) (202 Points)

22 July 2008

can internal auditor can be appointed as an Statutory auditor of Limited Company?

pls send your answer to me on cavickyshah @ gmail.com

Thanks

vatsal shah

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7 Replies

BABU.D (.) (408 Points)
Replied 22 July 2008

No,it is not possible

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SONUJRT (CA FINAL STUDENT) (337 Points)
Replied 22 July 2008

HHHHHHHHHiiiiiiiiii VATSAL...

It is not possible...

kishor kumar g.c (C A Final Student) (142 Points)
Replied 22 July 2008

No IT IS NOT POSSIBLE REFER CARO REPORT

Prasanna.Rm (Finance Pro) (110 Points)
Replied 22 July 2008

Shah:

The main concept of bringing the internal auditor is to have additional control on the transaction to result in accuracy and authencity,with absolute independence.

Hence,the internal auditor is brought in by the management and not by the statutory auditor,if for instance the Int.Ar is brought in by the St.Ar,there always lies a question of the its accuracy and independence.

However,the reports generated by the Int.Ar MAY be considered by the St.Ar.

CA.Madhavan (Chartered Accountant) (942 Points)
Replied 05 August 2008

No ,No chance............

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ram udgar roy (taxation) (28 Points)
Replied 09 August 2008

Originally posted by :VATSAL SHAH
"	can internal auditor can be appointed as an Statutory auditor of Limited Company? pls send your answer to me on cavickyshah @ gmail.com Thanks vatsal shah	"

CA SURAJIT KASHYAPI (Service) (25 Points)
Replied 19 August 2008

Please put clear questions ....

An Internal Auditor of a Company can be appointed as Statutory Auditor of another Company. But Internal & Statutory auditor of a Company can not be a same person. Because Statutory Auditor need to comments on internal control in his audit report as per CARO.

Company at its AGM recruits its Statutory Auditor -- Section 224 of Companies Act. Whereas Internal Auditor can be recruited by the mangement of the Company - No clause in Companies Act.

I have not seen any clause in Companies Act which says internal audit is compulsory for any types of Companies (Overlooking CARO clause no (iv) ), so there are no link between internal audit & statutory audit except the CARO reporting of Statutory Auditors.