Audit of accounts - son of a director

[PRADEEP KUMAR]

Whether a son of director can audit account of company in which son's father is director???

[Rama Krishana]

The answer is No.

[DEV KUMAR KOTHARI]

Which audit you are concerned about? What is capacity of director? The query must be complete with ground work by issue raiser. Otherwise it amount to wastage of resources and intellectual's time. What is capacity of director- a promoter director, a government nominee, an independent director.. Whether son of director is otherwise qualified for doing audit? Some audits can be undertaken by son or other relative of directors where independence is not crucial for example internal audit, certification of figures compiled with (e.g. in case of Tax Audit (except annexure to it that is statutorily audited accounts. Some special type of audits can preferably be assigned to son of director for special checking, special reporting etc. if the son is competent to do the same. This column of TaxTMI - Home is to initiate discussion and ascertain various possible views to further the object of learning and sharing knowledge and to clear doubts. The issue placed should include some basic information about the subject matter so that readers can at least have some idea about the issue, problem,related provisions and off course the views of the initiator of the issue. This will be helpful in getting better response from learned readers. In absence of the same, the readers cannot be serious about the issue and willing to spare time to merely provide information and solutions. This is my personal view.

AI Summary

Can a Director's Son Audit Company Accounts? Permissibility Depends on Audit Type and Independence. A query was raised about whether the son of a director can audit the accounts of a company where his father is a director. One response simply stated that it is not permissible. Another response questioned the type of audit and the director's role, suggesting that some audits, like internal audits, might be acceptable if independence is not crucial. It emphasized the need for complete queries to avoid wasting resources and highlighted the forum's purpose for knowledge sharing and discussion.