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CA Ravi Taori
A person qualified as an Actuary under the Actuaries Act, 2006.
A person with a bachelor’s degree in architecture from a legally established university or recognized institution.
A person with a bachelor’s degree in engineering / technology from a legally established university or recognized
institution.
A person with a master’s degree in business administration from legally established universities or technical
institutions recognized by the All-India Council for Technical Education.
Fees of Co-Operative Society Audit
Circulars/Orders: The Institute found Circulars/Orders from State Cooperative Societies that mentioned the
requirement of auditors to pay a portion of their audit fee to the state government.
Council's Consideration: The Council discussed the issue, noting that the government is requesting auditors
to deposit a percentage of their fee to recover administrative and other expenses.
Council's Decision: The Council decided that there is no ethical barrier in the Code of Ethics to accept such
assignments where a percentage of the professional fee is deducted by the government for administrative and
other expenditure.
Case Study
Misconduct: A Chartered Accountant shared 50% of audit fees with a non-Chartered Accountant under the
name of office allowance. This arrangement continued for multiple years.
Council's Decision: The Council determined that the Chartered Accountant had shared his profits and was
therefore guilty of professional misconduct.
Substance Over Nomenclature: The Council emphasized that the substance of the transaction is more
important than the name given to it.
(CNO-PE.1060) Transfer of Goodwill
Proprietorship Firm
Situation: Proprietor Dies
Transfer of Goodwill: Then in such case sharing of fees with legal representative wont be possible because New
CA never had partnership relationship with CAs who died. Upon the death of the sole proprietor, the goodwill
of the firm can be sold/transferred to another eligible member of the Institute. Fixed amount will be paid for
goodwill not linked to profits of firm.
Payment: Payments for the sale of goodwill may be made in instalments, if the agreement contains such
provision.
Time Limit: Provided such sale is completed in all aspects within a year of the death of such proprietor
concerned.
Dispute: The name of the concerned firm would be kept in abeyance (i.e. not removed on receipt of information
about the death of the proprietor) only upto a period of 1 year from date of settlement of dispute.
Partnership Firm
Situation A: The context is a partnership firm, which involves two or more partners. One of the partners in the
firm passes away.
Share of the Fees: The legal representative can continue to receive a share of the firm's profits, but this is subject
to whether such a provision is included in the partnership agreement.
Situation B: If all partners of firm die. And if any CA wants to take over practice of firm.
Transfer of Goodwill: Then in such case sharing of fees with legal representative wont be possible because New
CA never had partnership relationship with CAs who died. In this case new CA can purchase goodwill of firm
and pay fixed amount for transfer of goodwill to legal representative.
Time Limit: Provided such sale is completed in all aspects within a year of the death of such proprietor
concerned.
Dispute: The name of the concerned firm would be kept in abeyance (i.e. not removed on receipt of information
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