[TO BE PUBLISHED IN PART III SECTION 4 OF THE GAZETTE OF INDIA] | |||
NEW DELHI: DATED 12.5.2004 | |||
NOTIFICATION (Chartered Accountants) | |||
No. 1-CA (7)/75/2004: In exercise of the powers conferred by Clause (ii) of Part II of the Second Schedule to the Chartered Accountants Act, 1949, and in supersession of Notification No. 1-CA (7)/29/95 dated 1st March, 1995 published in Part III Section 4 of the Gazette of India dated 25th March, 1995, the Council of the Institute of Chartered Accountants of India hereby specifies that a member of the Institute in practice shall be deemed to be guilty of professional misconduct, if he on behalf of the firm of chartered accountants in which he is a partner (a) consisting of 4 or more partners but less than 8 partners with at least one partner holding a certificate of practice for five years or more; or (b) consisting of 8 or more partners with at least one partner holding a certificate of practice for five years or more; accepts or carries out any audit work involving receipt of audit fees (excluding reimbursement of expenses, if any) for such work of an amount less than what is specified hereunder:- | |||
Practising firm having 4 or more partners but less than 8 partners | Practising firm having 8 or more partners | ||
(i) | In cities with population of 2 million and above. | Rs. 5000/- p.a. | Rs. 9000/- p.a. |
(ii) | In cities/towns having population of less than 2 million. | Rs. 3000/-p.a. | Rs. 6000/- p.a. |
Provided that such restriction shall not apply in respect of the following:-
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This becomes operative for all audits relating to accounting periods beginning on or after 1.4.2004. | |||
Explanation: | |||
For the purpose of this notification, the expression statutory auditor means and includes a chartered accountant appointed as an auditor under a Central/State or Provincial Act as well as an auditor appointed under any agreement. | |||
The Council has clarified that for the above purpose the audit of Provident Fund Trust, Gratuity Fund etc. carried out by the statutory auditor are to be considered as separate and distinct audit so that the above restrictions are applicable to it. | |||
(DR. ASHOK HALDIA) SECRETARY |