Can the same person prepare accounts and audit?

yashsr (CA) (2270 Points)

27 February 2012  

Hello,

In usual practice, at least for small scale private limited companies, it is usually the CA who both does the accounting and the Company Statuory Audit. But legally I don't think a person who prepares the accounts can audit the same. Isn't this so? Is there any section in the Companies Act, 1956 that deals with this?

Anyways, we all know these kinds of rules are only on paper and in practical life it is very difficult to abide them. So if I were to prepare the Accounts of a Company and also Statutory Audit them, is it safe to bill them for both? Or does it have to tweaked in some other name?