V.V important for all Chartered Accountants.
Recent Clarifications issued by ESB of #ICAI:
1. Member cannot be appointed as Statutory and/ or Tax auditor, of such a company, for a period of 2 years from the
date of his resignation or removal as a director from such company
2. A partnership firm/ LLP having >= 10 partners cannot act as branch auditors of such a company of which they are the
statutory auditors, but there is no restriction in examination of books of accounts and other records of those
branches for the purposes of their statutory audit of such company
3. A chartered accountant cannot exercise lien over the client documents/records for non-payment of his fees.
4. A member in practice cannot hold Customs Brokers Licence under section 146 of the Customs Act, 1962 read with
Customs Brokers Licensing Regulations, 2013 in terms of the provisions of Code of Ethics.
5. A Chartered accountant in service may appear as tax representative before tax authorities on behalf of his employer,
but not on behalf of other employees of the employer.
6. A chartered accountant who is the statutory auditor of a bank cannot for the same f.y. accept stock audit of the same
branch of the bank or any of the branches of the same bank or sister concern of the bank, for the same f.y.
7. A concurrent auditor of a bank ‘X’ cannot be appointed as statutory auditor of bank ‘Y’, which is sponsored by ‘X’.
8. A CA/CA Firm can act as the internal auditor of a company & statutory auditor of its employees PF Fund.
9. Permitting the use of firm name by any person, mentioning the firm as a "Knowledge Partner" or in the "Thank
You" advertisement, is not permissible.
10. A statutory auditor and tax auditor can not be valuer of the unquoted equity shares as it would create threats to independence of the auditor.
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