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?
Somaas Kandan (CA Final) (385 Points)
29 March 2012Whether 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?
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...
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