Auditing and assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

Siddhi & Co., a chartered accountant firm is appointed a fund manager of an INGO situated in Nepal. The INGO has then transferred money in the current account of Siddhi & Co. for the operation of project activities. Opine on the act of Siddhi & Co. for:
i) transferring certain money to saving bank account and
ii) charging/ drawing fee due from the client.

ANSWER
a) Section 12 of the Code of Ethics of the Institute of the Chartered Accountants of Nepal permits keeping client‟s money for using on legal activities on behalf of client and which is also permitted the ToR and the agreement with the client.
i) The act of transferring client‟s money in saving bank account for reasonable time is valid only when it seems likely that the client‟s monies remain on current account for a significant period of time and Siddhi & Co. have taken prior concurrence of the client.
ii) Siddhi & Co., can charge/draw fees due from a client‟s monies provided that client, after being notified of the amount of such fees, has agreed to such withdrawal.



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