Source: https://auditguru.in/question/ca-in-practice-gives-opinion-on-the-financial-statementf-without-verification-of-closing-stock-and-result-is-large-amount-of-revenue-expenditure-was-capitalised-whether-he-signed-guilty-of-profession/
Timestamp: 2019-08-24 12:24:52
Document Index: 319893591

Matched Legal Cases: ['art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1', 'art 1']

CA in practice gives opinion on the financial statementf without verification of closing stock and result is large amount of revenue expenditure was capitalised. Whether he signed guilty of professional misconduct under clause 2 of part 1 of second schedule with clause 7 of part 1 of second schedule? - Auditguru
CA in practice gives opinion on the financial statementf without verification of closing stock and result is large amount of revenue expenditure was capitalised. Whether he signed guilty of professional misconduct under clause 2 of part 1 of second schedule with clause 7 of part 1 of second schedule?
Home » Questions » CA in practice gives opinion on the financial statementf without verification of closing stock and result is large amount of revenue expenditure was capitalised. Whether he signed guilty of professional misconduct under clause 2 of part 1 of second schedule with clause 7 of part 1 of second schedule?
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)
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