The Institute of Chartered Accountants of India ( ICAI ) has clarified that Chartered Accountants are not permitted to share Client Information with Credit Rating Agencies except if permitted by Auditee Client.
In a statement issued by ICAI said that The Institute has been receiving queries from the members as to whether the Statutory Auditor of a Company can give feedback of the said Company to the Credit Rating Agencies (CRAs).
The ICAI clarified that under the provisions of Chartered Accountants Act,1949 it is not permissible to members to share client information with the CRAs, except if permitted by the Auditee client.
The members may ensure compliance with the above. Failure to comply with the same shall result in professional misconduct in terms of the provisions of the Chartered Accountants Act,1949 and the Code of Ethics.
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