(a) Aditya & Co., a firm of Chartered Accountants in practice has been approached by Skill Development Council of Government of India to conduct…

CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · January 2026
(a) Aditya & Co., a firm of Chartered Accountants in practice has been approached by Skill Development Council of Government of India to conduct an assessment and performance audit of its various training centres across the country. Scope of work of the same includes reviewing the efficiency of operations, utilisation of funds, quality of training imparted and suggesting measures for improvement. In this context, the partners of the firm are concerned about the permissibility of accepting such an engagement. Would accepting this assignment amount to a service prohibited for members in practice under the Chartered Accountants Act, 1949?

Suggested Answer and Working Notes:

As per the recent decisions taken by the Ethical Standards Board of ICAI, it is permissible for members in practice to engage in the services assessment/performance audit of the centres of skill development council of Government of India as these are permissible under Management Consultancy and other services issued under section 2 (2) (iv) of the Chartered Accountants Act, 1949. In the given case, Aditya & Co., a firm of Chartered Accountants in practice has been approached by the Skill Development Council of Government of India to conduct an assessment and performance audit of its various training centres across the country. The scope of work includes reviewing the efficiency of operations, utilisation of funds, quality of training imparted, and suggesting measures for improvement. Thus, from above it can be concluded that Aditya & Co. can accept the offer given by the Skill Development Council of Government of India to conduct an assessment and performance audit of its various training centres across the country.

Topics: Professional Ethics & Liabilities of Auditors

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