Praveen Kanumuri (Program Manager) (33 Points)
27 November 2009Dear All,
Can an Auditor audit ceritify / audit the financial statements wherein the underlying books of accounts are maintained or prepared by a relative of the Auditor. The relative of the auditor here in question could be brother, son or daughter in law of the auditor.
Also the scenario here is that the target organization is not a Comapny under the Companies Act, 1956.
Best Regards
santhosh
(CA)
(636 Points)
Replied 27 November 2009
Only if its a company there is more serious issue to think about. since its not a corporate if the auditors independence is not affected. he can certify the financials.
Navneet Gupta
(Article)
(129 Points)
Replied 20 December 2009
No he cannot. He if does so, he would be guilty of professional misconduct under the Chartered Accountants Act. There is a specific provision in the second schedule of the above Act prohibiting a CA from expressing his opinion on the financial statements of an enterprise in which he or any of his relatives is interested.
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