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Professional Misconduct

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VARUN RANJAN

Student

231 Points Posted on 23 August 2020

A person (Mr. N) is disqualified u/s 164(2) from being appointed as a Director
but the auditor has not checked the Director's Qualification and audited other companies wherein the Mr.N is a Director.

Is the auditor guilty of Professional Misconduct.?

If yes under which clause & schedule??

Replies (2)

Quick Summary

This discussion examines whether an auditor is guilty of professional misconduct when they fail to verify a director's qualifications, particularly when that director is disqualified. The content suggests that such an oversight could fall under professional misconduct, referencing specific clauses and schedules related to due diligence and negligence in auditing duties.

Chahat Bansal

226 Points Posted on 24 August 2020

Schedule 2 part 1 clause 8, CA in practice shall be guilty of professional misconduct if he does not exercise due diligence or is grossly negligent in conduct of his duties.