Vikash ShrivastavaVikash Shrivastava asked 1 year ago
1 Answers
RaviRavi Staff answered 1 year ago

ok lets bring clarity to these 3 clauses of second schedule part 1 
Clause (2) — “Examination Not Done” by Concerned CA / Partner / Employee / Other CA In Practice — In PM there 2 Cases where they have applied this clause but this is applied with clause 7 — investments not verified / consumption certificate on the basis of board minutes , there are no much cases in this clause.
Clause (7) — Gross Negligence — Not Going for Hearing / Not doing timely work / careless overall working ignoring big mismatches and frauds / signing 2 audit reports etc 
Clause (8) — Not Obtaining Sufficient Information & Explanation (now it sounds like type gross negligence, but for lack of information we should apply specific clause (8)
Conclusion 
when all together no checking is done — apply clause (2) & Clause (7)
when specific information is not seen — apply clause (8) & then also refer clause (7)
 above looks logical, this should cover majority of answer as in PM.
please ask doubts in comment section again

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