An association wants to appoint auditor whose father is treasurer of association itself whether ha can accept such appointment? and if yes then whether there are any disclosure to be given in audit report by auditor ???
1 Replies
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 14 June 2013
As per the CA Act, 1949 an auditor as a matter of preserving its independence shoud not accept an audit of any concern in whihc his relatives or any relatives of partners are associated.
In your case the auditors happens to be the treasurer of the association, so it is advisable that the audtor shud not accept the audit of such associatino as it would hamper the auditors independence since the auditor's father himself is the treasurer and there might be some possibility of some fraud taking place. also the auditor will not be able to give an independent report.
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