2.       CHARTERED ACCOUNTANTS ACT, CHARTERED ACCOUNTANTS  REGULATIONS, CODE OF CONDUCT AND ALLIED ISSUES

2.1       Query

Intimation of Acceptance of Internal Audit to

Statutory Auditor.

Before a Chartered Accountant (other than the Company’s Auditor) accepts the job of Internal Auditor, should he give such information to the Company’s Auditor? I feel that he may or may not give such information because the internal audit is not a company’s regular audit under the Companies Act though in some cases it has also become necessary under the Act.

                                                          Opinion                                                         April 20,1961

Although strictly under the Schedule to the Chartered Accountants Act, it is not necessary for a Chartered Accountant to notify the company’s statutory auditor before undertaking the work of internal auditing, the better practice and the healthier one would be to make a reference out of sheer courtesy as between one professional and another.

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