10 February 2016
She cannot accept that audit engagement As per clause(4) of part I of shedule II ,a CA is deemed to be guilty of professional misconduct if he express his opinion on financial statements in which his firm or a partner has substantial interest.As per council guidelines,2008,the above restriction is also applicable for relatives of the members.
10 February 2016
In line with international best practices, the Committee recommended an abbreviated list of disqualifications for auditing assignments, which includes: ● Prohibition of any direct financial interest in the audit client by the audit firm, its partners or members of the engagement team as well as their 'direct relatives'. This prohibition would also apply if any 'relative' of the partners of the audit firm or member of the engagement team has an interest of more than two per cent of the share of profit or equity capital of the audit client. ● Prohibition of receiving any loans and/or guarantees from or on behalf of the audit client by the audit firm, its partners or any member of the engagement team and their 'direct relatives'. ● Prohibition of any business relationship with the audit client by the auditing firm, its partners or any member
CAclubindia
