Financial Daily from THE HINDU group of publications
Friday, Aug 30, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - Regulatory Bodies & Rulings


ICAI questioned on `non-audit work' ambit

Our Bureau

NEW DELHI, Aug. 29

THE Department of Company Affairs (DCA) today questioned the move of the Institute of Chartered Accountants of India (ICAI) to keep certain services such as "tax work" outside the ambit of its recent regulation barring auditors from accepting non-audit fees in excess of audit fees from the same client.

"ICAI has placed a cap on the non-audit fees that an auditor can receive from a client for whom a member of the institute has performed statutory audit work. This has been done to ensure independence of the auditor. But at the same time, it has excluded certain areas such as tax work from the definition of non-audit work. This makes us think as to whether the cap is really a truthful cap," the DCA Secretary, Mr Vinod Dhall, said here.

ICAI had on March 8 notified that a practising member of the institute will be deemed to be guilty of professional misconduct if he accepts the appointment as a statutory auditor of a PSU/Government company/listed company and other public companies having a turnover of more than Rs 50 crore in a year and accepts any "other work" or "assignment" or "services" to the same undertaking on a remuneration which exceeds the fee payable for carrying out the statutory audit of the same undertaking.

It had also specifically mentioned that the term "other work" or "assignment" or "services" would include management consultancy, and all other professional services permitted by the Chartered Accountants Act, but would not include audit under any other statutes; certification work required to be done by the statutory auditors and representation before any other authority.

Send this article to Friends by E-Mail

Stories in this Section
HPCL has no plans to exit MRPL `at the moment'


Leyland gets export orders for Rs 34 cr
Emcure, NCL develop new drug
SRF board meet
IPCL open offer: Reliance to accept 57 pc subscription
Philips to divest printed circuit board assembly business
SEBI proposes `corporate governance rating' soon — In touch with Crisil, ICRA
Parakh Foods mulls new refineries
Kaveri Telecom facility launched
DCA sets up panel to review `Maocaro'
DCA favours stringent penalties
ICAI questioned on `non-audit work' ambit
Mahindra Ugine eyes revival
Fresh proposal sought for Trayons' revival
Vebtel forays into IP telephony; to invest Rs 5 cr
LML targets bigger export pie
Price cut boost to Maruti 800 sales; limited model coming
Keki Mistry joins Sun board


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line