The Institue of Chartered Accountants of India (ICAI) has made it compulsory of the practising Chartered Accountants to maintain the ‘Client KYC Norms’. The CAs now need to maintain proper documentation and information about their clients’ details. These norms will apply in all kinds of audits, assessments, certifications, etc.
The decision was taken firstly in the 356th Meeting of ICAI held on 29th, 30th June and 1st July 2016.
The standard of Chartered Accountants in India is highest among others, so, ICAI has made the decision of maintaining the records compulsory, keeping in mind the current state of the CAs.
The following details are required to be kept on-person by the CAs:
1. IF THE CLIENT IS AN INDIVIDUAL/ PROPRIETOR
A. GENERAL INFORMATION
- Name of the Individual
- PAN No. or Aadhar Card No. of the Individual
- Business Description
- Copy of last Audited Financial Statement
B. ENGAGEMENT INFORMATION
- Purpose of Engagement
2. IF THE CLIENT IS A CORPORATE ENTITY
A. GENERAL INFORMATION
- Name and Address of the Entity
- Business Description
- Name of the Parent Company (if subsidiary)
- Copy of last Audited Financial Statement
B. ENGAGEMENT INFORMATION
- Purpose of Engagement
C. REGULATORY INFORMATION
- Company PAN No.
- Company Identification No.
- Directors’ Names & Addresses
- Directors’ Identification No.
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3. IF THE CLIENT IS A NON CORPORATE ENTITY
A. GENERAL INFORMATION
- Name and Address of the Entity
- ii) Copy of PAN No.
- Business Description
- Partner’s Names & Addresses (with their PAN/Aadhar Card/DIN No.)
- Copy of last Audited Financial Statement
B. ENGAGEMENT INFORMATION
- Purpose of Engagement
These norms shall come into force w.e.f 1 st January, 2017.
It is stated that the above mentioned norms are to come into effect from 1st January 2017
