Comment with reference to the provisions of the Chartered Accountants Act, 1949 and Schedules thereto in the following situation: (a) CA Anshul is…

(a) CA Anshul's request to share audit working papers and internal findings: Relevant Provision: Clause (1) of Part I of the First Schedule to the Chartered Accountants Act, 1949, states that a Chartered Accountant in practice shall be deemed to be guilty of professional misconduct if he “discloses information acquired in the course of his professional engagement to any person other than his client so engaging him without the consent of his client or otherwise than as required by any law for the time being in force.” Explanation: Confidentiality: An auditor acquires a great deal of confidential information about the client during an engagement. This information must be treated with utmost confidentiality. The duty of confidentiality continues even after the completion of the assignment. Client Consent: Disclosure of client information is permissible only with the client's consent or if required by law. In the case of a company, consent must be obtained from a competent authority, such as the Board of Directors (through a resolution) or a duly authorized Managing Director. Audit Working Papers: Audit working papers are the property of the auditor. The auditor is not required to provide the client or other auditors access to these working papers. While the auditor may, at their discretion, make portions or extracts available, this should only be done after obtaining proper consent from the client. There is a clear distinction between sharing information (which may be provided with consent) and sharing working papers (which are the auditor's property). Internal Findings: Internal findings, especially those related to significant litigation, regulatory investigations, and tax disputes, are highly sensitive. Sharing these without proper authorization could prejudice the company's position. Application to the Case: In the given case, CA Anshul obtained details of significant litigation, regulatory investigations, and tax disputes during the audit of Rise Ltd. The Managing Director requested him to share audit working papers and internal findings for internal restructuring purposes. CA Anshul must not share the audit working papers or any confidential internal findings relating to litigation, investigations, or tax disputes with the Managing Director, or discuss it with anyone other than the client, without the client's proper consent obtained through a competent authority (e.g., a Board resolution or specific authorization from the Board to the MD). Even with consent, sharing working papers is at the auditor's discretion, but sharing confidential information requires consent. Sharing such information without proper consent would amount to professional misconduct under Clause (1) of Part I of the First Schedule. (b) Mr. Raman using