Sir in new 20 cases of ethics one the case is when auditor can hold the credit card with limit of Rs 10,000, why this is considered under substantial interest in clause 4 p1 sch2 and not in clause 1 p2 sch2 which is regarding contravening any guidelines of the act… because guideline provides the limit of Rs. 10,000

1 answer

Ravi Staff April 29, 2018

first of all, credit card limit is not 10,000 — amount outstanding after due date should not be exceeding 10,000
secondly yes council guidelines 2008 prescribes limit of 10,000 — as per answers in pm and content in module cases should given reference of  council guidelines 2008 first and at the last you can refer Second Schedule Part II Clause 1
now rtp didn’t give clause numbers but only cases, i tried to give clause numbers
Second Schedule Part 1 Clause 4 has many clarifications under it, they all focus on instances where independence is the issue,  many of them pertains to bank audit, now indebtedness is also issue which affects independence so i considered it in cl4 but yes you can give reference of council guidelines 2008 also at the end


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