i came across a balance sheet which is duly audited by a chartered acountant...it states that the firm is availing OD limit from one bank and CC limit from other bank...the terms and conditions of the CC limit clearly states that the firm is to exclusively deal with that bank...
Now the CA is liable for it or not? what is CA's liability in such case?
if the ca can prove that he exercised due diligence , he cant b held liable
CA can not be held liable, since it is not a infraction of any law. It is just a violation of agreement between bank and company. CA has no duty regarding this.
i have submitted 112 for CS permission with penalty 300 for late filing.
but intitute reply via letter That ur memebrship number will u get 4 months late due to late filing but there is no provision in 112 regarding this. CS is also not regular course.
wht shuold i do becuase i already paid panelty for late submission ?
Management Representation letter is taken by Auditor from the management during the audit finalisation and hence Auditor not held liable since there is no voilation of law or in Institute's Pronouncements
| Originally posted by : Ravi Khandelwal | ||
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CA can not be held liable, since it is not a infraction of any law. It is just a violation of agreement between bank and company. CA has no duty regarding this. |
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agree
Eventhough CA is not liable for that, i think, he has to make a statement in the audit report about vaiolation of terms.
yes A CA is not liable for non compliance of banking terms
CA can not be held liable for non compliance of terms.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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