03 April 2010
Dear experts, A member who is a partner is also a director in a consultancy co.(XYZ co.) which acts as consultants.The XYZ Company got an assignment of a co. whose auditors is the firm in which the director is the partner .will he be affected by any disqualifications? The consultancy fees received from the co. is comparatively higher than the audit fees.will it affects the Section 2(2) of the Chartered Accountants act Please help......
03 April 2010
The member should restrain himself from such assignment. Its better to avoid such involvement as it will be difficult to establish the independence of the auditors in such case.
CAclubindia
