| The Committee on Ethical Standards (CES) a non-standing Committee of the Institute while clarifying on Amended Clause (4) of the Part I of the Second Schedule of the CA Act, 1949 noted that the immunity granted to the Members earlier by disclosing their interest has been done away with by deleting the words “unless he discloses the interest also in his report” by amending the Clause (4) of the Second Schedule by the Chartered Accountants (Amendment) Act, 2006. The Committee clarified that after the amendment under Clause (4) of the Second Schedule the Members are prohibited from auditing the accounts of such business concerns in which he, his firm or a partner in his firm has a substantial interest. The Members may refer to Appendix (9) of the CA Regulations, 1988 for the term ‘substantial interest’. | |
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