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CA Ravi Taori
Joint Audit
Firm with less than five members: The practice of appointing a practicing firm with less than five members as
Joint auditors should be encouraged in large companies.If a client wishes to appoint such a firm as a joint auditor,
the senior firm should not object.
Ratio Between Qualified and Unqualified Staff
Ratio: The Council recommends a ratio of at least one qualified member for every five non-qualified staff
members in a Chartered Accountants firm involved in audit work.
Exclusion: This ratio excludes articled and audit assistants, typists, peons, and any other individuals not directly
involved in professional work.
Disclosure of Interest by Auditors in other Firms
Disclosure: Auditors must disclose payments received for services provided through other firms.
Other firms: The other firms could be ones where the auditor is a partner or proprietor.
Transparency: This practice is to promote transparency in the auditing process.
Recommended Minimum Scale of Fees
Revised Minimum Fees: The Institute has issued a revised minimum scale of fees for the professional
assignments of ICAI members.
Charging: The recommended scale of fees should be charged based on the work performed for different
professional assignments. The fees have been recommended separately for Class-A, B, and C cities.
Fees – Disclosure to ICAI (Recent announcement mandatory)
Non-PIE: Non-Public Interest Entities (PIEs) are required to disclose if the gross annual professional fees from
an audit client represent more than 40% of the total fees of the firm for two consecutive years.
PIE: Public interest entities are required to disclose if the gross annual professional fees from an audit client
represent more than 20% of the total fees of the firm for two consecutive years.
Exemption (20 Lakhs) : If the total fees received by the firm do not exceed 20 lacs of rupees, the above provisions
do not apply.
Exemption (Government Entities): The above provisions do not apply if the audit is being conducted for
government companies, public undertakings, nationalized banks, public financial institutions, regulators, or if
the auditors are appointed by the government.
(CNO-PE.1820) Recent Decisions of Ethical Standards Board
Section 6 – Significance of COP
Tax Representation: A Chartered accountant in service may appear as a tax representative before tax authorities
on behalf of his employer, but not on behalf of other employees of the employer. (will need COP)
First Schedule Part I Clause 11 (Shortcut: CA should be TEMPEReD)
Customs Broker License: A member in practice cannot hold a Customs Brokers License under section 146 of
the Customs Act, 1962, read with Customs Brokers Licensing Regulations, 2013, as per the provisions of the
Code of Ethics.
Agency Restrictions: Chartered accountants in practice are not allowed to take on agencies of UTI, GIC, or
NSDL
Trust Settlor: It is permissible for a member in practice to serve as a settlor of a trust. (like liquidator)
Equity Research Advisor: A Chartered Accountant in practice can serve as an equity research adviser, but cannot
publish retail reports, as it would be considered another business or occupation.
Mediator: A Chartered Accountant in practice can act as a mediator in court, as this role falls within the
definition of an "arbitrator" according to Regulation 191 of the Chartered Accountants Regulations, 1988.
Professional Advisor on IPR: Although a practicing member cannot act as a Trademark or Patent Attorney,
they can provide professional advice on Intellectual Property Rights (IPR) as part of their routine work, as
allowed by the Chartered Accountants Act, 1949.
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