Q. Can a company pay fees to a partner of audit firm for issue of certificates by him in his personal capacity.

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Question added Apr 24 Audit and Accounting Standards By Arun Kumar Goel, CA, Delhi

1. Can a Professional Pvt. Company pay fees to a partner of its audit firm for issue of certificates by him in his personal capacity for Company's clients. Is there any code of conduct issue. How to show in Profit and Loss Account in Schedule III, under Auditors Remuneration or under other Professional fees.


 

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answered Apr 25 By CA PRAMOD JAIN, CA, CS, CMA, LL.B, Delhi
The individual partner and his firm are separate persons. Payment to partner, is not payment to audit firm. Please check if the service is no where coming u/s 144 of companies Act

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