Page 411 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Firm Limit: In a firm of Chartered Accountants in practice, the “specified number of audit assignments” applies
to each partner of the firm. That mean Firm Limit will be Number of Partners x 30. If a partner is also part of
other Chartered Accountants firms, the total number of audit assignments across all firms related to that partner
can't exceed the “specified number of audit assignments”. If a partner accepts audit assignments in their
individual capacity or through their proprietary firm, the total number of such assignments for all firms related
to that Chartered Accountant and by him can't exceed the “specified number of audit assignments”.
Exclusion: In a firm of Chartered Accountants in practice, excluding one-person Companies and dormant
companies.
Joint Audit: The number of audits of companies accepted by a Chartered Accountant or any partner of their
firm, whether singly or in combination with another Chartered Accountant or firm, is taken into account when
computing the “specified number of audit assignments”.
HO & Branches / Multiple Branches: The audit of the head office and branch offices of a company by one
Chartered Accountant or firm is regarded as one audit assignment. Similarly, the audit of one or more branches
of the same company by one Chartered Accountant in practice or by a firm where he is a partner is considered
as one audit assignment.
Partner Count: The number of partners of a firm on the date of acceptance of an audit assignment is taken into
account.
Full Time or Part Time Employment: A Chartered Accountant in practice, whether in full-time or part-time
employment elsewhere, is not counted for the purpose of determining the “specified number of audits of
Companies” by firms of Chartered Accountants. Similarly, a Chartered Accountant being a part-time practicing
partner of a firm is not taken into account for the purpose of reckoning the audit assignments of the firm.
Record Keeping: A Chartered Accountant in practice and firms of Chartered Accountants in practice must
maintain a record of the audit assignments accepted by them or by any of the partners of the firm in their
individual name or as a partner of any other firm, preferably in the prescribed format.
Chapter IX: Appointment as Statutory auditor (Maximum Limit of Non Audit Fees)
Maximum limit of OWAS: A member of the Institute in practice should not accept the appointment as statutory
auditor of Public Sector Undertakings, Government Companies, Listed Companies, and other Public
Companies with a turnover of 50 crores or more in a year if they accept any other work, assignment, or service
(OWAS) related to the same entities that exceeds the fee for the statutory audit.
Regulatory Conditions: If appointing authorities or regulatory bodies specify more stringent conditions or
restrictions, those will supersede the conditions or restrictions specified under these Guidelines.
Inclusions & Exclusions of OWAS: This term includes Management Consultancy and all other professional
services permitted by the Council under Section 2(2)(iv) of the Chartered Accountants Act, 1949. It does not
include audits under any other statute, certification work required to be done by the statutory auditors, or any
representation before an authority.
Combined OWAS Fees: The restrictions apply to fees for other work, services, or assignments payable to the
statutory auditors and their associated concerns combined.
Associate Concern: An "associate concern" refers to any corporate body or partnership firm that provides
Management Consultancy and other professional services permitted by the Council. In such a concern, the
proprietor and/or partner(s) of the statutory auditor firm and/or their "relative(s)" are directors or partners and
hold a "substantial interest" either jointly or individually.
Cunclusion: An associate concern or corporate body can undertake additional work, services, or assignments
for the mentioned undertaking/company. However, the total remuneration for these additional tasks, including
fees paid to the statutory auditor(s) and their associated concern(s) or corporate body(ies), should not exceed the
total fee for conducting the statutory audit.
Chapter X : Indebtedness Limit.
A member of the Institute in practice or a partner of a firm in practice or a firm or a relative of such member or
partner shall not accept appointment as auditor of a concern while indebted to the concern or given any

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