Page 395 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Exemptions: Such delegation will not attract the provisions of this clause. The instances where this applies
include:
• Correspondence: Acknowledging and carrying on routine correspondence with clients.
• Information Request: Requesting information or issuing questionnaires.
• Audit Queries: Issuing audit queries during audit.
• Acknowledgements: Issuing acknowledgements for records produced.

• Vouchers: Initiating and stamping vouchers and schedules prepared for audit purposes.
• Verification: Issuing a memorandum of cash verification and other physical verifications or recording the
results thereof in the books of the clients.

• Drafts: Forwarding draft observations/financial statements.
• Billing: Raising of bills and issuing acknowledgements for money receipts.

• Tax Practice: Attending to routine matters in tax practice, subject to provisions of Section 288 of the Income
Tax Act.
• Administration: Handling any other matter incidental to the office administration and routine work involved
in the practice of accountancy.
Cannot delegate responsibility: If a chartered accountant or a firm of chartered accountants delegates the
authority to sign documents, the absence of a chartered accountant's signature on the documents is not a valid
defense in cases of professional misconduct investigations.
Disclosures Along with Signing
Disclosure of Name: Council has decided that where a Chartered Accountant while signing a report or, a
financial statement or any other document is statutorily required to disclose his name, the member should
disclose his name while appending his signature on the report or document. Where there is no such statutory
requirement, the member may sign in the name of the firm.
MRN & FRN: The revised SA 700 now requires the inclusion of Membership Number and Firm Registration
Number in the signed documents.
UDIN: Members are advised to refer to the Institute's UDIN Guidelines of 2018 for additional guidance on
signing documents.

PART II - Professional misconduct in relation to members of the Institute in service
(CNO-PE.1320) CLAUSE 1
A member of the Institute (other than a member in practice) shall be deemed to be guilty of professional
misconduct, if he being an employee of any company, firm or person
Clause (1) pays or allows or agrees to pay directly or indirectly to any person any share in the emoluments of the
employment undertaken by him.
Rationale
Purpose: The main objective of this rule is to ensure that jobs are obtained and retained based on one's own
professional capabilities, not through financial deals that compromise professional dignity.
Exceptions: The prohibition does not apply to sharing or commitments among relatives, dependents, or friends,
provided there is no relationship involved in obtaining or retaining the job and payment is not a factor in
securing or keeping the job.

(CNO-PE.1340) CLAUSE 2
A member of the Institute (other than a member in practice) shall be deemed to be guilty of professional
misconduct, if he being an employee of any company, firm or person

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