Audit by a ca who is not an employee/partner: billing

Practise 797 views 2 replies

yashsr

2285 Points Posted on 24 July 2012

Hello,

A Chartered Accountant named 'Tendulkar' has his own proprietory firm 'Tendulkar & Associates'. A friend of him 'Kambli' who is also a Chartered Accountant but works as a Professional Consultant in some firm(also holds COP) refers a relative of him to get his accounts audited by 'Tendulkar'. However, to reduce the fees, Kambli offers to help Tendulkar in his work and Kambli is the one who signs the Income Tax Audit and VAT Audit.

Now, can 'Tendulkar & Associates' invoice the client for his Audit Fees? FYI, Kambli is neither a partner nor an employee of Tendulkar.

Replies (2)

Abhijeet Singhania

Consultant

38 Points Posted on 15 September 2012

Originally posted by : yashsr
	Hello, A Chartered Accountant named 'Tendulkar' has his own proprietory firm 'Tendulkar & Associates'. A friend of him 'Kambli' who is also a Chartered Accountant but works as a Professional Consultant in some firm(also holds COP) refers a relative of him to get his accounts audited by 'Tendulkar'. However, to reduce the fees, Kambli offers to help Tendulkar in his work and Kambli is the one who signs the Income Tax Audit and VAT Audit. Now, can 'Tendulkar & Associates' invoice the client for his Audit Fees? FYI, Kambli is neither a partner nor an employee of Tendulkar.

Hello Mr.Yash.As per Professional Ethics Laws,the person who signs the audit report is authenticated to get the fees in the name of his firm.So,the invoice couldn't be made in the name of "Tendulkar & Associates".

yashsr

2285 Points Posted on 15 September 2012

Originally posted by : Abhijeet Singhania
	Hello Mr.Yash.As per Professional Ethics Laws,the person who signs the audit report is authenticated to get the fees in the name of his firm.So,the invoice couldn't be made in the name of "Tendulkar & Associates".

Hello,

Is there any specific schedule/clause which deals with this issue?