Please Explain this clause of Prof Ethics.

920 views 2 replies

 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)

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.

 Thanks Kamal Jain Ji.


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