Question ID : 40995

073206

Kindly state whether a chartered accountant do the (as it is) computerisation of manual cash book and audit. The plea is we are doing only computerisation of cash book not involving any skill and not amending/ correcting the manual cash book. Many of the chartered accountants are doing this. kindly guide.

Answer ID : 80940

as per the ethical standards, the same person who prepares the books of accounts can not carry out the audit and issue the audit certificate. in many cases, the manual books will not balance when a TB is taken, in such cases, the manual day book is computerised in Tally or some other software to get a tallied Tb. this can not be termed as accounting , you are only computerising the manual books.

Answer ID : 80946

No. The auditor cannot provide accounting and bookkeeping services alongwith providing audit services.

Answer ID : 80948

Do not take up both assignments simultaneously because it is violative of the provisions of 'Code of Ethics' and 'Guidance Note on Independence of Auditors' . Section 144 of the Companies Act, 2013 also contain a prohibition if the auditee is a company.

Answer ID : 80977

MUST NOT DO, accounting and auditing both job for same client cannot be done by same PCA as per COC.

Answer ID : 81006

Yes. But he must get an engagement letter from the client precisely mentioning the duty of the auditor as well as of the client including professional fees and documentation.

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