Chapter 10 Leave a Comment / By / Audit Which of the following is a prohibited service to be rendered by the auditor of the Company? Design and implementation of any financial information system Making report to the members of the company on the accounts examined by him Compliance with the auditing standards Reporting of fraud against the company by officers or employees to the Central Government None GP & Co LLP is a firm of Chartered Accountants having 35 partners. The firm has 9 branches across India. The firm was appointed as statutory auditor of PQR Ltd for the year ended 31 March 2018. The firm designated Mr. NG Goel as the signing and engagement partner for the statutory audit of PQR Ltd. During the course of audit, NG Goel was fully involved, however, the finalization of financial statements took long and the time when they got finalized, NG Goel had to travel for some urgent work for a month outside India. As regards the signing of the financial statements, please suggest which of the following options is correct? PQR Ltd should wait till the time NG Goel returns and if required, NG Goel can sign the financial statements back dated. PQR Ltd should wait till the time NG Goel returns and only after that financial statements will be signed In the absence of NG Goel, any other partner of the firm, being a CA, can sign the financial statements of PQR Ltd In the absence of NG Goel, any other partner of the firm, being a CA, can sign the financial statements of PQR Ltd, but the firm should intimate about the same to the ROC and Income Tax authority None SHRD Private Ltd is engaged in the business of software and consultancy. The company has an annual turnover of INR 2,000 crores but its profit margins are not very good as compared to the industry standards. For the financial year ended 31 March 2019, the company proposed appointment of its statutory auditors at its Board meeting, however, the remuneration was not finalized. The statutory auditors completed the engagement formalities including the engagement letter between the company and the auditors and it was decided that the engagement letter be signed without fee i.e. with the clause that the fee to be mutually decided. Please provide your views on this. Such engagement letter is not valid. Engagement letter with such arrangement is valid. Engagement letter should specify the fee of last year, if applicable, if the fee for the current year is not yet finalized at the time of signing of the engagement letter. Engagement letter should specify 10% increase in the fee as compared to last year as per the norms of the ICAI, in case the fee is not finalized at the time of signing of the engagement letter. None Advise whether the auditor appointed by a private limited company with paid up capital of Rs.60.00 Crore, in the following cases are valid for the financial year 2017-18 Amanpreet (an Individual auditor) who has been the auditor since the Financial Year 2011-12 Firm MGA & associates, was appointed as auditor in the Financial Year 2011-12 Firm MGA & associates, who completed 10 years continuously as auditor in company. Now company wants to appoint VGA & associates wherein Mr. V is a partner who is also partner is MGA & Associates. The provisions of rotation of auditor are not applicable on private companies None Time's up
