Statutory audit of a share broker

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2013 Please advice whether a CA can do the statutory audit of a share Broker where the CA himself has made investments in shares as a client.

CA Priyank Singhi

CA Priyank Singhi (Expert)
Follow

20 February 2013 No you will be disqualified as an auditor and cannot audit the broking firm where you transact.

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2013 but suppose the substantial interest in the firm is less than 20% than can the said CA can do the audit of the same firm

CA Priyank Singhi

CA Priyank Singhi (Expert)
Follow

21 February 2013 3) None of the following persons shall be qualified for appointment as auditor of a company—

(a) a body corporate;

(b) an officer or employee of the company;

(c) a person who is a partner, or who is in the employment, of an officer or employee of the company;

(d) a person who is indebted to the company for an amount exceeding one thousand rupees, or who has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees;

You will be indebted to the firm because you are trading there. The question of substantial interest does not arise here. Since you are trading with the company, it is advisable not to take up such an audit.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

zafar chandwale

Partha Pratim Sen

Akash Sawant

John Ravindran Moses

Shashank S Gore

Subscribe Now

Statutory audit of a share broker

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

CA Final

Article Assistant

Accountant