JayshreeJayshree Staff asked 1 year ago
1 Answers
RaviRavi Staff answered 1 year ago

No, under Clause (3) of Part-I of the Second Schedule to the Chartered Accountants Act, 1949, a member in practice cannot permit his name or the name of his firm to be used in connection with an estimate of earnings contingent upon future transaction in a manner which may lead to the belief that he vouches for the accuracy of the forecast. However, the Council has decided that a Chartered Accountant can participate in the preparation of profit or financial forecasts and can review them, provided he indicates clearly in his report the sources of information, the basis of forecasts and also the major assumptions made in arriving at the forecasts and so long as he does not vouch for the accuracy of the forecasts.

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