Question ID :
18908
Signing Audit Report
Can a CA sign audit report of his cousin brother proprietorship firm us 44AB
Posted by
Prashant
on
Sep 18, 2015
Filed Under
MISC.
No .He should not sign the audit report us 44AB of that firm. Being a relative, he should not accept that audit as per code of ethics of ICAI.
Posted by
Satish Hebbar on
Sep 18, 2015
Answer ID :
52115
Yes, because Income tax Act,1961 does not prohibit a relative being appointed as tax auditor. The said CA has no substantial interest in the auditees business,therefore, tax audit acceptance will not be against ICAI ethics. However, the relationship should be necessarily disclosed in the audit report.
Posted by
B.CHACKRAPANI WARRIER on
Sep 21, 2015
Answer ID :
52118
Though the stand taken byt CA B.CHACKRAPANI WARRIER meets the letter of the law, the spirit of our professional regulations should be to steer clear of such practices.
Posted by
S Subramanian on
Sep 21, 2015
Answer ID :
52487
cousion not covered under relative under income tax, so it can be accepted
Posted by
CA JEET REWRI on
Jan 19, 2016