Menu
Audit ethics
Somebody pls help me on ths audit questn
Mr A,a CA is a tax consultant of Agni ltd.for the current fiscal year.For this service he has to visit the company daily from 11 am to 3 pm and has been paid monthly salary of rs.80000.The company intends to appoint him as its statutory auditor at the AGM. What opinion can we give for this situation?
a co. was in d proces of incorporatn.promoters of the co signed an agreement 4 d purchase of certain furniture 4 d company n payment was 2 be made 2 d suplier by d company after incorporatn.shortly,after incorporation d company went into liquidation n d debt cud nt b paid by d company 2 d suplier.as a result suplier sued d promoter of d co 4 d recovery of money.Examine whethr promoters can b held liable 4 payment undr folowing situations:
1.whn d co. had already adoptd d contract aftr incorporatn.
2.whn d co. makes a fresh contract wid d suplier in terms of pre-incorporation contract.
Replies (3)
Oops sory the my questn is upto the part of audit only nt d pre incorporatn contract.
Hi Saman,
IN NORMAL CASE, CA who is Stat Auditor of Company can be its Tax Auditor and VICE VERSA. But in your case, CA is visiting daily to Company and is being paid monthly remuneration also. Hence, IN SUBSTANCE, he has become an employee of Company.
Sec. 226 of Co Act - Officer / Employee of Company cannot be appointed as Stat Audit of Co. Hence, Mr. A cannot be appointed as Stat Auditor of Agni Ltd.
Other Views are welcome.
agree with yogesh shah ....
Recent Topic
- Clarification Needed: Reporting Accrued vs Paid FD
- TDS on prize given to participants in Livestock sh
- TDS related matter - 194 IA
- Research: How do CA firms handle GSTR-2B reconcili
- CA FINAL FR IndAS 33 Illustrtion 14
- Taxation on Sale of old Jewellery Received at Marr
- ITR-3 Filling issues
- PF withdrawal and tax liability
- Sale of Goods or Services?
- ITR form query
Related Topics
CAclubindia
