Is statutory audit valid?
This query is : Resolved
22 December 2011
Dear Experts,
There is one private limited company whose turnover is more than 50 crores and paidup capital is 50 Lakhs.
The statutory auditor after the approval of directors has outsourced the tax planning and accounting work to his wife(Not a CA, only B.com Graduate).
Now the statutory auditor's wife is doing the accounting and tax planning work for the same company.
Now the Statutory Audit done by his husband is valid and whether he is an interested auditor?
There is one private limited company whose turnover is more than 50 crores and paidup capital is 50 Lakhs.
The statutory auditor after the approval of directors has outsourced the tax planning and accounting work to his wife(Not a CA, only B.com Graduate).
Now the statutory auditor's wife is doing the accounting and tax planning work for the same company.
Now the Statutory Audit done by his husband is valid and whether he is an interested auditor?
Guest
Guest
(Expert)
23 December 2011
23rd December, 2011
Dear Amit,
The statutory auditor has to ensure that he does not violate the "Maker - Checker" principle in Financial Accounting and Reporting. Even if his wife handles the Accounting and Tax Planning work, it has to be validated and authorized by an Official of the Company.
CA firms render financial accounting, auditing and tax services under one "umbrella" and so as long as the above principle is not violated, the statutory auditor is not an "interested auditor'.
FCA Prashant Chavan
Dear Amit,
The statutory auditor has to ensure that he does not violate the "Maker - Checker" principle in Financial Accounting and Reporting. Even if his wife handles the Accounting and Tax Planning work, it has to be validated and authorized by an Official of the Company.
CA firms render financial accounting, auditing and tax services under one "umbrella" and so as long as the above principle is not violated, the statutory auditor is not an "interested auditor'.
FCA Prashant Chavan
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
