can a CFO as per law can be appointed as internal auditor of company

Hi,

Whether Special resolution or Ordinary resolution is required for the appointment of Auditor by shareholders after the recommendation of the Board? Please revert asap as filing of MGT-14 depends on this. It will be filed only if SR is required to be passed.

Also, Please tell whether ADT-1 is filed after appointment by the Board or by shareholders in the EGM?

Kindly revert asap.

if a ca in service is appointed as an internal auditor of any company then whether he is deemed to be a member in practice u/s 2(2) of ca act 1949?? and if yes whether he will be penalised u/s 24??

Dear Friends
Last year FY 2015-16 one of my client(individual assesses) had turnover above of Rs.1. Cr. and Audit was done as per section 44 AB
Now this year FY 2016-17 turnover is below 1 cr. and he has paid Car Hire charges to vendors of Rs. 50 Lakh
Whether he is liable to deduct TDS as current year turnover is below 1 cr and audit is not applicable in current FY .
Section only says TDS is applicable from next FY if prcedding FY turnover is above 1 cr and audit is done as per 44AB, but in my case audit is not applicable in current year.
Thanks
Jitesh

Dear Experts,

Those who are damn sure about this question with exact 100% sure answer then reply. If you are not sure about

answer then do not reply/discuss. Actually this one of questions which comes in Recruitment of Manager (Account & Finance).
This question has become controversial and this question has gone to High court.


Qus) Which term defines internal audit with clarity ?

(1) Internal Audit is an evaluation and analysis of the financial statements conducted by the internal audit staff.

(2) Internal Audit is an evaluation and analysis of operation of business conducted by external audit staff only.

(3) Internal Audit is an evaluation and analysis of the business operation conducted by the internal audit staff.

(4) Internal audit is an evaluation and analysis of the financial ststements only conducted by the external agency.

Can an internal after resigning act as a statutory auditor...for exmpl ABC did internal audit for FY 2014-15 and appointed as statutory auditor for FY 2015-16...is it possible... Nothing such mentioned in sec 141... does condition of cooling period of 5 years need to ne applied on it...?

what is the meaning of word "Special Consideration" in SA 800 & 805 ?

can anyone suggest me the audit checklist for iron and steel industry?

I am prensently working in a bank as credit manager and now while doing appraisal of a account, I observed that the last three audit reports were not stamped by the auditors however it was initialled. Further only the notes to accounts were stamped. Please clarify me on the same.

Hi! I have a query in ICAI's PM on Chapter of Professional Ethics. The Question asked is:
"A practicing Chartered Accountant was appointed to represent a company before the tax authorities. He submitted on behalf of his clients certain information and explanations to the authorities, which were found to be false and misleading.Comment with reference to the Chartered Accountants Act, 1949 and schedules thereto."

Institute has given its suggested answer with reference to Clause (5) and (6) of Part I of Second Schedule as follows:
"As per Clause (5) of Part I of Second Schedule to the Chartered Accountant Act, 1949, if a member in practice fails to
disclose a material fact known to him which is not disclosed in a financial statement, but disclosure of which is necessary to make the financial statement not misleading, where he is concerned with that financial statement in a professional capacity, he will be held guilty under Clause (5).
As per Clause (6) of Part I of Second Schedule if he fails to report a material misstatement known to him to appear in a financial statement with which he is concerned in a professional capacity, he will be held guilty under Clause (6).
In given case, the Chartered Accountant had submitted the statements before the taxation authorities. These statements are based on the data provided by the management of the company. Although the statements prepared were based on incorrect facts and misleading, the Chartered Accountant had only submitted them acting on the
instructions of his client as his authorized representative.
Hence the Chartered Accountant would not be held liable for professional misconduct."
In my opinion, we cannot make a reference to Clause (5) and (6) since in the aforesaid question as CA is not at all expressing an opinion on Financial Statements. He is making a representation before IT Authorities. Hence, according to me, the answer should be:
Whenever a chartered accountant prepares any statement or return on behalf of his client for representation before the any authority, he prepares such statement or return only to the best of his knowledge and according to the information and explanations provided to him.
If any information or explanation is not provided to chartered accountant or is falsely provided to chartered accountant, then there is no further responsibility on part of chartered accountant, provided he has exercised reasonable care. But, if he has not exercised due diligence or reasonable care, then he shall be deemed to be guilty of professional misconduct under clause (7) of Part I of Second Schedule to Chartered Accountants Act, 1949.
Hence the Chartered Accountant would not be held liable for professional misconduct in the current case, assuming that he has exercised reasonable care and skill.
Kindly suggest whether ICAI's suggested answer is correct?