Business Relationship = Any Commercial Transactions = For doing further earning activity
As stationary will be for Office, used for profession to earn, it is commercial transaction and hence business Relationship
Auditor cannot have business relations with client and it is not covered in exceptions sonot is not allowed , limit of 5,00,000 is not relevant in this case .
Investment Banking in short means helping to buy and sell business .
Investment Advisory is giving advice for where to invest surplus money
Firm includes LLP , it is a body corporate , body corporate if holds more than 50 % will be called holding and similarly subsidiary
It simply means firms controlling us are holding and firms we are controlling are subsidiary
1. CA in practice can do job , that is possible in some circumstances which we study in ca final professional ethics chapter , so it’s possible that job and COP co exist.
2. Business relationship means any commercial transactions , renting office , buying office stationary is also covered.
3. Investment Advisory = Advicing people where to invest money.
Outsourced financial services = taking responsibility to arrange finance for company whenever required in best possible terms.
4. Indirectly covers giving services through relatives , company where ca has control and significant influence , through a firm with same brand name , throught connected person etc
So, as per Ans 2., Auditor of Navneet Notebooks cannot purchase Stationery from his client whether by cash or on credit upto Rs. 5 Lakhs?
3. Then what’s the difference between Investment Banking Service and Investment Advisory Service?
In question 4., Sir, I’m not able to understand Parent/Subsidiary/Associate in case of P’ship Firm.
Please ask seperate question everytime you as query 🙂
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Thank you so much for detailed answer. Quite surprised about Navneet’s answer.