AUDITOR'S INDEPENDENCE
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 August 2010
can a CA firm can do audit of a company of which director is relative of one of the partner of CA firm . Again CA firm can accept audit of any parnership firm of which any partner is relative of any CA or auditor is Itself sleeping partner in such partnership firm.In which section or professional ethics it prohibit.
Ankur Garg
(Expert)
27 August 2010
Section 226 of the companies act which is about disqualification of auditor is silent about the relatives of proposed auditor in the company.
However as per ICAI internal regulations the same position should be avoided and not advisable. In other words an auditor should not accept audit of a company where his relative is a director simply to maintain his independence.
Bcoz if somebody raise a question about his independence then it would be a bit difficult for auditor to prove his independence.
Wait for other expert opinions.
Regards
However as per ICAI internal regulations the same position should be avoided and not advisable. In other words an auditor should not accept audit of a company where his relative is a director simply to maintain his independence.
Bcoz if somebody raise a question about his independence then it would be a bit difficult for auditor to prove his independence.
Wait for other expert opinions.
Regards
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