CODE OF ETHICS
- Cases & Issues of Unjustified
Unjustified Removal of Auditors
- Section 224 – Appointment & Remuneration of Auditor
- Section 224A – Auditor not to appointed except with the approval of the company by special resolution in certain cases.
- Section 225 – Provisions as to resolutions for appointing or removing auditors
- Clause (8)&(9) Part I of Schedule I of CA Act,1949
Relationship with Other Members in Practice
- Communication with outgoing Auditor in case of change of auditor
- Compliance with the requirement of section 224, 224A & 225 of the Companies Act, 1956
Communication with outgoing Auditor in case of change of auditor
- Non-compliance of the Provisions of Section 224, 224A & 225 of the Companies act, 1956
- Non-payment of undisputed audit fees
- Issuance of a qualified report
Compliance with the requirement of Sec. 224, 224A & 225 of the Companies Act
- To ensure that the outgoing is properly removed
- That the guidelines prescribed by the Institute have been complied with
- To ensure that the incoming auditor is properly appointed.
- Independence in Appearance
Independence Should be Exhibited in
Threats of Independence
- Safeguards Created by the Profession, Legislation or Regulation
- Safeguards within the Assurance Client
- Safeguards within the Firm/s own Systems & Procedures
Safeguards Created by the Profession, Legislation or Regulation
- Education, Training & Experience
- Continuing Education Requirements
- Professional Standards & Disciplinary Processes.
- External Review of Firms Quality Control System.
- Legislation Governing Independence
Safeguards within the Assurance Client
- Competent Employees to make Managerial Decisions.
- Policies and Procedures for fair Financial Reporting.
- Corporate Governance Structure
Safeguards within the Firms own Systems & Procedures
- Policies & Procedures for Quality Control
- Documented Independence regarding Identification of threats and Application of Safeguards.
Objective & Structure
- Identifying Threats to Independence
- Applying appropriate Safeguards to eliminate or reduce the threats.
Public Interest Public Consists of
- Professional Competence and Due Care