Code of ethics

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2012 1) WHAT IF A CA DOESN'T DO A AUDIT & SIGNED AN UNTALLIED BALANCE SHEET.

2) IF A CA IS THE STATUTORY AUDITOR IN A PVT LTD COMPANY HAVING TRANSACTIONS AROUND 1 CR IN THE SAME ORGANISATION ON HIS & HIS FAMILY MEMBERS NAME.

3) DOESN'T HAVE A REGISTERED OFFICE FOR AUDIT WORK.

DOES ALL THE ABOVE POINTS ARE AGAINST THE CODE OF ETHICS.

IF YES, THEN HOW A INDIVIDUAL CAN FILE A COMPLAINT AGAINST HIM, KEEPING HIS NAME CONFIDENTIAL.
KINDLY
GUIDE ME THE PROCEDURE & DOCUMENTS REQUIRED FOR THE SAME.

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2012 WHY NO REPLY ??

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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19 July 2024 The scenarios described raise serious ethical concerns for a Chartered Accountant (CA). Let's address each point and discuss the implications:

### 1. Signing an Untallied Balance Sheet

**Ethical Issue**: Signing an untallied balance sheet is a violation of professional ethics. As per the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI), it is the responsibility of the CA to ensure that the financial statements are prepared in accordance with the applicable accounting standards and are free from material misstatements.

**Consequence**: This can lead to misleading financial reporting and potential legal consequences for the CA.

### 2. Conflict of Interest as Statutory Auditor

**Ethical Issue**: Being the statutory auditor of a private limited company while having significant transactions (around 1 crore) in the same organization on the CA's and their family members' names constitutes a conflict of interest.

**Consequence**: This undermines the independence and objectivity required of an auditor, which is crucial for providing unbiased audit opinions.

### 3. Lack of Registered Office for Audit Work

**Ethical Issue**: Not having a registered office for audit work can raise concerns about the CA's professionalism and adherence to proper business practices.

**Consequence**: It may indicate non-compliance with regulatory requirements and could affect the quality and credibility of audit work.

### Filing a Complaint Against the CA:

If you believe that a CA has violated ethical standards, you can file a complaint with the Institute of Chartered Accountants of India (ICAI). Here’s the procedure:

1. **Prepare a Complaint Letter**: Clearly state the facts of the case, including specific instances of unethical behavior or violations of the Code of Ethics.

2. **Supporting Documents**: Gather any relevant documents that support your complaint, such as copies of untallied balance sheets, evidence of conflict of interest, or any other pertinent information.

3. **Confidentiality**: If you wish to keep your name confidential, you can request anonymity in your complaint. However, providing your identity can sometimes strengthen the credibility of the complaint.

4. **Submission**: Submit the complaint letter along with supporting documents to the appropriate regional office of ICAI or through their online complaint portal, if available.

5. **Follow-Up**: After submitting the complaint, follow up with ICAI as per their guidelines. They may conduct an investigation and take appropriate disciplinary action if the complaint is substantiated.

### Contact Information for ICAI:

- **Website**: [ICAI Complaints Portal](https://www.icai.org/complaint)
- **Regional Offices**: Contact details for regional offices can be found on the ICAI website.

### Final Note:

Filing a complaint against a CA should be done responsibly, with factual evidence and adherence to the due process outlined by ICAI. It’s important to maintain confidentiality if desired, but also be prepared to provide necessary information to support your complaint effectively. Ethical standards are crucial in maintaining trust and integrity in the accounting profession.

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