Auditing and assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

M.P. Bhattarai FCA, a sole practitioner, met with an accident and fractured his right wrist which had to be put in the plaster cast. Due to his inability to write his hand, he authorized his employee Shyam Prasad Gautam CA to sign the audit report on his behalf so as not to delay certification of financial statements of his clients.
Answer
Only a member holding certificate of practice or partner of a firm with certificate of practice (with all member of the firm also holding certificate of practice) can certify audited financial statements of the client entity and issue audit report in his name or on behalf of the firm. Authority to certify financial statements and issue audit report cannot be delegated to an employee under any circumstances. In the

given case, M.P. Bhattarai FCA, a sole practitioner, cannot authorize his employee S.P. Gautam, a Chartered accountant, to sigh the audit report despite his physical disability.



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