Special audit ‑ Who should be appointed as special auditor ‑ Policy regarding - Companies Law - Letter : No. 8/16(1)/61,

Letter : No. 8/16(1)/61, dated 9 ‑ 5 ‑ 1961. Subject:- Special audit ‑ Who should be appointed as special auditor ‑ Policy regarding Power conferred by section 233A will be exercised not as a matter of routine but in special circumstances and after making such enquiry as the Central Government might consider necessary on the facts and circumstances of each case. As regards the appointment of a person not in practice, this might be required by the special circumstances of the case and does not run counter to the Chartered Accountants Act. It may also be mentioned that Government will themselves consider as to who should be appointed as special auditor. There is no inconsistency between the provisions of the Chartered Accountants Act and section 233A whereby the Central Government has been empowered to appoint a chartered accountant who is not in practice for the special audit of a company. Even though the auditor appointed by a company is required to audit its books of account in accordance with law, in fact, however, cases may occasionally arise when the said auditor may not be considered suitable for the purpose of the special audit. Government has to exercise its discretion in such cases.