Appointment of - Whether statutory auditor of company can also be its internal auditor

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..... tory auditor of company can also be its internal auditor A question has been raised whether a statutory auditor of a company can also be its internal auditor, which has been carefully examined in this Department and its view is as follows : The internal auditor is appointed by the management and hence is in the position of an employee, whereas the statutory auditor is appointed by the company .....

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..... and nature of business. It is, therefore, obvious that if the statutory auditor of the company is also the internal auditor, it will not be possible for him to give an independent and objective report under section 227, read with para 4(A) of the said Order. As such, in the opinion of this Department, a statutory auditor of a company cannot also be its internal auditor. - Circular - Trade Notic .....

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