Page 370 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

(Others)
IT Services: Handling systems analysis and design, computer-related services, including hardware selection and
software development in all areas of services that can be provided by a Chartered Accountant, and any other
professional services related to electronic data processing (EDP).
Insurance Advisory: Providing insurance financial advisory services under the Insurance Regulatory &
Development Authority Act, 1999, including insurance brokerage.
Insolvency Professional: Acting as an insolvency professional under the Insolvency and Bankruptcy Code,
2016.
## Consideration of “tax implications” while rendering the services

(CNO-PE.800) "Prohibited Services for Auditors under Section 144 of the Companies Act, 2013"
Prohibition: Section 144 of the Companies Act, 2013 prescribes certain services not to be rendered by the
auditor.
Prior Approval: For Other Services: An auditor appointed under this Act shall provide to the company only
such other services as are approved by the Board of Directors or the audit committee, as the case may be.
List of Service: (whether such services are rendered directly or indirectly to the company or its holding company
or subsidiary company), namely.
Shortcut BAD MAFIA: investment Banking services; investment Advisory services; Design and implementation
of any financial information system; Management services; Actuarial services; rendering of outsourced Financial
services; Internal audit; Accounting and book- keeping services; and any other kind of services as may be
prescribed.

(CNO-PE.820) Companies not to Engage in Accountancy
Prohibition on Company: Section 25 of the Chartered Accountants Act, 1949 prohibits companies, including
limited liability partnerships (LLPs) with a company as a partner, from practicing as chartered accountants.
Conditional Prohibition on LLP: While LLPs can be appointed as auditors as per the Companies Act, 2013,
they cannot engage in practice if they have a company as a partner, as per the Chartered Accountants Act, 1949.
Authorization in LLP: According to Section 141(2) of the Companies Act, 2013, if a firm (including an LLP)
is appointed as an auditor of a company, only the partners who are chartered accountants are authorized to act
and sign on behalf of the firm.
Penalty: If a company contravenes this provision, its officers who knowingly participate in the contravention
can be fined. The fine can be up to 1,000 on first conviction and 5,000 on subsequent convictions.

(CNO-PE.840) (Sec 7) Member in Practice Prohibited from using a Designation Other Than Chartered
Accountant
Prefix
Members of the Institute are now permitted to use the word 'CA' as prefix before their name irrespective of the
fact that they are in practice or not. (If CA is having Doctorate, he can use Dr. in any sequence he wants)
Designation
Practicing CA: The Act prohibits practicing members from using any designation other than "Chartered
Accountant".
Non-Practicing CA: non-practicing members who do not use the "Chartered Accountant" designation are
permitted to use any other designation.
Firm’s Designation: A firm composed entirely of practicing Chartered Accountant partners can use "Chartered
Accountants" in its firm name.
Other Letters or description
No Prohibition: The section does not prohibit adding other letters or descriptions with person's name.

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