Dear Friends
Please explain me the Clause 12 of Part I of First Schedule of Professional Ethics with Example
"Allows a person not being a member of the Institute in practice,or a member not
being his partner to sign on his behalf of his firm, any balance sheet , profit & loss account
, report or financial statement"
Please explain the above clause with any example.
This means you can not delegate the attest function to anybody unless
For example
X , Y and Z are partner in a firm of chartered accountants, holding certificate of practice.X is out of station and financial statements are to signed while he is away.Y or Z can sign the fianancial statements on behalf of the firm.However, A who is an employee of the firm, irrespective of the fact that A is CA holding certificate of practice, can not sign on behalf of the firm.
Hope i could reply the querry.
Thanks Kamal Jain Ji.
CCI
Pro
CAclubindia
