kinnary (student) (231 Points)
20 January 2009hello everybody....i have three simple questions...
1.....can an auditor besides practicising have a business of his own??
2......can an auditor be a director in his father's company?
3......can auditor be the statutory auditor of his father's firm?
i read professional ethics...n jus thought of havin some opinions abt above doubts
CA Thomas Raju Paravada
(Chartered Accountant)
(570 Points)
Replied 20 January 2009
for ur first question
There is no rule that an auditor should not hav any other business
For 2nd and 3rd question
Yes. But he should not hav any liability to the company and he should not hav shares in the company. and more over in the audit report, relationship should be disclosed. Otherwise it will be a professional misconduct.
But in practice no one will think like you. B coz these are all the basic rules for an auditor.
kinnary
(student)
(231 Points)
Replied 20 January 2009
| Originally posted by :Thomas | ||
| " |
for ur first question but to become director one should hold qualification shares right?? |
" |
CAclubindia
