Statutory auditor

C P JAIN (Articled Assistant) (24 Points)

13 August 2012  

Facts :

In a company X securiteis Limited (The Company) , ABC & Co is the statutory auditor. The Company has two divisions one is Stock Broking and the other is Depository. For Depository division, SEBI needs a concurrent audit report in its own format. The statutory auditor ABC & Co does the internal audit as per the sebi guidelines and gives the internal audit report for the Depository division which is to be submitted to SEBI.

Is it valid as per code of ethics and the present laws. Whether the auditor ABC&Co can be appointed as statutory auditor for the next year.