(Know Your Ethics) Whether a member in practice will be liable in a case where he was alleged to have signed two balance sheets on two different dates for the same financial year, the first on e with a clean report and the second one with a qualified report?

Questions › Category: CA-Final Prof Ethics › (Know Your Ethics) Whether a member in practice will be liable in a case where he was alleged to have signed two balance sheets on two different dates for the same financial year, the first on e with a clean report and the second one with a qualified report?

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Jayshree Staff asked 6 years ago

Question Tags: Know Your Ethics

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Ravi Staff answered 6 years ago

Yes, the action of the Chartered Accountant in signing two Balance Sheets on two different dates for the same financial year will constitute professional misconduct under Clause (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949, which states that a member in practice shall be deemed to be guilty of professional misconduct, if he is grossly negligent in the conduct of his professional duties.