Recent ESB decision – statutory auditor cannot become valuer of unquoted equity shares of same company.. being appointed as valuer it will attract clause 11(other occupation)?? Please explain.. Because you have answer in your notes as it will attract clause 4 (expression of opinion) i am not justified with that answer.

1 answer

Ravi Staff April 25, 2019

To avoid conflict of interest. 
Income tax department has said that statutory auditor and tax auditor cannot do work of valuation of unquoted equity shares.
Icai has asked members to follow the same else it will be professional misconduct. 
Now icai has not specified clause for such announcement.
Now cases of not doing audit with other services are related to independence and hence such cases are covered in under clause 4

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