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Whether professional misconduct?

Stat Audit 737 views 1 replies

Somaas Kandan

CA Final

385 Points Joined April 2010

Whether a Company can appoint statutory auditor in which the Director's brother has been a Partner of that CA Firm and the financial statements signing by other partner?

Is this attract Professional Misconduct under Chartered Accountants Act?

Replies (1)

Guest

If the derctors Brother Has been (in the past ) a partner there in no legal barrier under company law

Howerver pronouncment of the Institute on "Independece of an auditor " states that a PCA shall take attmost care to be in indepndedt state of mind while conducting any audit assinment

so the PCA shall take care of that asspect

but as no dirct relation can be established it can not be termed as a missconduct...