CA IN PRACTICE... ( CA ) (490 Points)
05 December 2009Dear Friends
Please explain me the Clause 12 of Part I of First Schedule of Professional Ethics with Example
"Allows a person not being a member of the Institute in practice,or a member not
being his partner to sign on his behalf of his firm, any balance sheet , profit & loss account
, report or financial statement"
Please explain the above clause with any example.
Kamal Jain
(FCA)
(200 Points)
Replied 05 December 2009
This means you can not delegate the attest function to anybody unless
For example
X , Y and Z are partner in a firm of chartered accountants, holding certificate of practice.X is out of station and financial statements are to signed while he is away.Y or Z can sign the fianancial statements on behalf of the firm.However, A who is an employee of the firm, irrespective of the fact that A is CA holding certificate of practice, can not sign on behalf of the firm.
Hope i could reply the querry.
CAclubindia
