Can a auditor can be appointed as an internal auditor of company if he is the statutory auditor of the another company in which the management is same in both the companies? The both the companies do not have investments in each other companies
2 Replies
Sana Sultana Mussu
(Student)
(5119 Points)
Replied 29 May 2017
No .. he cannot be appointed.
If he is appointed he will lose his position as a statutory auditor.
If he is appointed he will lose his position as a statutory auditor.
Shishir
(Big4 audit)
(34 Points)
Replied 01 June 2017
Hi Saikumar. Common management is also included in the definition of related parties as per sec 2(76). Since sec 144 of companies act, 2013 specifically prohibits the auditor from accepting appointment as an internal auditor, such an appointment would lead to automatic disqualification from the position of statutory auditor.
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