Services can't be provided by a CA to the company

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A Chartered Accountant (CA) appointed as a statutory auditor for a company is restricted from providing most other services. Section 144 of the Companies Act, 2013, specifically prohibits CAs from offering services like accounting, internal audit, and management consultancy, among others, directly or indirectly to the company they audit. While some services might be permissible with board or audit committee approval, the list of prohibited services is extensive.

ARITRA CHAKRABORTY

ARITRA CHAKRABORTY (Querist)

17 March 2020 Apart from auditing, can a CA charge consultancy fees to a company?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

17 March 2020 As per the regulations a firm which is a statutory auditor of any company or bank cannot do any other work and earn from it.

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Spurto Consultancy Services

Spurto Consultancy Services (Expert)

17 March 2020 Section 144 of the Companies Act, 2013 provides that an auditor shall provide to the company only such services those are approved by the Board of Directors or the audit committee, as the case may be but shall not include the following services rendered “directly or indirectly” to the company or its holding company or subsidiary company, namely:—
(a) accounting and book keeping services;
(b) internal audit;
(c) design and implementation of any financial information system;
(d) actuarial services;
(e) investment advisory services;
(f) investment banking services;
(g) rendering of outsourced financial services;
(h) management services; and
(i) services prescribed under the Rules

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