Important Decisions

  • Doing internship for company secretary by a CA in practice is akin to attending classes, which is in turn, is covered under Clause (5) of the ‘Permission granted generally’ of Appendix 9 of the Chartered Accountants, 1988, and as such, the same is permissible.
  • No communication under clause 8 of Part-I of Schedule-I to the Chartered Accountants Act, 1949 is required in case of death of the previous Auditor. However, the new auditor may be required to get a letter from the entity to confirm the factum of death of previous auditor.
  • It is not permissible for a member who has been Director of a Company, upon resignation from the Company to be appointed as an auditor of the said Company, and the cooling period for the same may be 2 years.
  • Images of non – personal items such as books etc. on the website of a CA Firm are not violative of website guidelines. As regard the use of images of people, the images of the people who are not the members of the firm are not permissible.
  • The use of ‘Dr.’ with the designation ‘CA’ may be left to the discretion of member (i.e. whether to use ‘CA’ first, or ‘Dr. First, or use ‘Dr.’ only before the name of the member).
  • CA. in practice can be a ‘Director Simplicitor’, which includes an independent director. The independent directors are part of the Board where the Accounts are approved, they being party to approval of financial statement. As such, there is no bar in their signing the financial statement. However, they can not be involved in the day to day affairs of the company.