CA Inter P5 · Chapter 11 · Question 4 of 13
Under Clause (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949, a member in practice is guilty of professional misconduct if he:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Accepts a position as auditor previously held by another chartered accountant without first communicating with him in writing
Explanation
Clause (8) requires that before accepting a position as auditor previously held by another chartered accountant, the incoming auditor must first communicate with the previous auditor in writing. The purpose is to learn whether there are professional reasons why the appointment should not be accepted. A first audit of a new company has no previous auditor.
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