If a CA firm is conducting an audit of a Government undertaking. So is it possible that they can prepare accounts of that concern also. I think that it is not possible as question of independence will be violated. But I am not getting any proof for that with respect to ethics and relevant section. So suggest any answer ..
Menu
Audit
Replies (1)
As per Clause 4, Part I, Second Schedule to The CA Act, 1949, A Member in Practice will be held guilty of professional misconduct if he expresses opinion on financial statement of an entity in which he himself, his partner, or his relative is :
i) director
ii) having substantial interest
if he is preparing the accounts of the auditee, or
he is a proprietor or partner in such entity.
NOTE: Substantial interest means voting rights/profit sharing >= 20% at any time during the year
Relative includes: spouse, children, brother, sister, lineal ascendant or lineal descendant
I think you got your answer, you cannot audit accounts prepared by yourself.
Thanks & Regards
Sourav
Recent Topic
- Section 54F exemption for buying a plot
- My client missed to file ITR 3 for AY 25-26
- Subscription/Membership fees
- Inverted tax gst refund
- Mismatch of pincode and district while registering
- Total income less than 12 lakhs but after processi
- Is Getsvision Solutions right for SMTP bulk email
- Queries on Stock/ETF gifting.
- Adding bank account for the deceased for ITR refun
- SALE OF EQUITY ON THE LAST DAY OF THE FY 2024-25 N
Related Topics
CAclubindia
