The Management of ABC Private Limited has appointed AAA and Co. (Chartered Accountant firm) as an internal auditor of the company who is also a statutory auditor of the ABC Private Limited. Is the appointment of AAA and

As per section 138 of the Companies Act, 2013, the internal auditor shall either be a Chartered Accountant or a Cost Accountant (whether engaged in the practice or not), or such other Professional as may be decided by the Board to conduct an internal audit of the functions and activities of the company. As per Section 144 of the Companies Act,2013 An auditor appointed under this Act shall provide to the company only such other services as are approved by the Board of Directors or the audit committee, as the case may be, but which shall not include inter-alia Internal Audit (whether such services are rendered directly or indirectly to the company or its holding company or subsidiary company). The internal auditor may or may not be an employee of the company. However, Statutory Auditor shall not be appointed as internal auditor of the company. Therefore, the appointment of AAA and Co. (Chartered Accounting firm) as an internal auditor of ABC Private Limited is not valid as AAA and Co. is also a statutory auditor of ABC Private Limited.