Can a ca provide consultancy services to a consulting agency

Anonymous (Articleship) (53 Points)

02 September 2016  

Can a CA provide Consultancy Services to a Consulting Agency?

XY Pvt Ltd, a consultancy firm obtain an internal audit assignment. XY Pvt Ltd approaches F, a CA to do internal audit on their behalf. Can F do the Internal Audit Work? Does it amounts to misconduct as per Professional Ethics as a CA is not allowed to accept recenue sharing business from a person other than a CA.

Further, both the directors of XY Pvt Ltd are Chartered Accountants.

Thanks in advance