CA Kapil is the auditor of INFRA Limited having a turnover of more than 250 crores. The audit fee for the year is fixed at 85 Lakhs. During the…

As per the Council General Guidelines 2008, under Chapter IX on appointment as statutory auditor a member of the Institute in practice shall not accepts the appointment as a statutory auditor of a PSUs'/Govt company(ies)/Listed company(ies) and other public company(ies) having a turnover of 50crores or more in a year and where he accepts any other work(s) or assignment(s) or service(s) in regard to same undertaking(s) on a remuneration which in total exceeds the fee payable for carrying out the statutory audit of the same undertaking. For this purpose, the other work/services include Management Consultancy and all other professional services permitted by Council excluding audit under any other statute, Certification work required to be done by the statutory auditor and any representation before an authority. In the given case, the company offers CA Kapil, the statutory auditor, an assignment of representation before Income Tax Appellate Tribunal for remuneration of 1.80 Crores. In view of the above provision, CA Kapil will not be held guilty of professional misconduct if he accepts the assignment of representation before Income Tax Appellate Tribunal for remuneration of 1.80 crore.