Please Explain this clause of Prof Ethics.

Others 847 views 2 replies

CA IN PRACTICE...

490 Points Joined May 2009

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.

Replies (2)

Kamal Jain

FCA

200 Points Joined April 2009

This means you can not delegate the attest function to anybody unless

he is a member of the institute holding certificate of practice, AND
he is a partner in your firm

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.