Page 464 - CA Final PARAM Digital Book.

that the scale of fees is the minimum prescribed scale of fees.
Part IV – Conclusion
➢ From the above facts and provisions, it may be concluded that CA. Posh is not liable for any
misconduct under the Chartered Accountants Act, 1949. Therefore, the contention of MNC Pvt.
Ltd. is not tenable.
Author’s Note
Minimum fees were prescribed in council guidelines 2008 however these minimum fees are discontinued
from 2011.As on today CA institute is not having any mandatory minimum or maximum fees.
Recommendatory fees is given in annexures of tax audit guidance notes, however being
recommendatory in nature Chartered Accountants may or may not follow it.

QNO KYC – Applicability Old Course-- (SM21)
782.005 TITANIUM CNO – PE.1760 New Course-- (SM23)
Mr. F, a Chartered Accountant, gave advisory services to PQR Pvt. Ltd. Further, he gave them GST
consultancy, compilation engagement for historical financial information and helped in ERP set
up. Later, the company turned out to be a part of a group of companies involved in money laundering.

Mr. F was asked to provide details of the companies. Mr. F refused on the grounds that he gave only
consultancy services to the company and wasn’t supposed to keep any information about the company.
Is Mr. F right as per the guidelines issued by the ICAI?
Part I -- Relevant Standards & Laws
▪ As per KYC Norms of Council of ICAI
Part II -- Requirements of Relevant Standards & Laws
➢ The financial services industry globally is required to obtain information of their clients and comply
with Know Your Client Norms (KYC norms). Keeping in mind the highest standards of Chartered
Accountancy profession in India, the Council of ICAI issued such norms to be observed by the
members of the profession who are in practice.

➢ In the given case of PQR Pvt. Ltd., a Corporate Entity, Mr. F should have kept following
information:
• General Information
o Name and Address of the Entity
o Business Description
o Name of the Parent Company in case of Subsidiary
o Copy of last Audited Financial Statement

• Engagement Information
o Type of Engagement

• Regulatory Information
o Company PAN No.
o Company Identification No.
o Directors’ Names & Addresses
o Directors’ Identification No.

Author’s Notes
KYC is applicable only to attest function. Here Attest function covers Compilation Engagement, Audits &
Review. For only Consultancy work KYC is not required.

QNO Internal Audit + GST Audit Old Course-- (M19R)
782.010 TITANIUM CNO – Unique
WCP & Co LLP are the internal auditors of DEF Ltd. WCP & Co LLP also agreed to undertake Goods and

Service Tax (GST) Audit of DEF Ltd simultaneously.
➢ The Council of the Institute, while considering the issue whether an internal auditor of an entity
can also undertake GST Audit of the same entity as required under the Central Goods and Service
Act, 2017, decided, that internal auditor of an assessee, whether working with the organization or
independently practising Chartered Accountant being an individual chartered accountant or a firm

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