CA Certification of Documents: Do’s and Don’ts

In the realm of document certification, Chartered Accountants (CAs) play a crucial role in upholding accuracy, professionalism, and ethical standards.

To ensure a seamless and compliant certification process, consider the following do’s and don’ts:

General DO’s of CA Certification: –

• Ensure the accuracy of information provided in the certificate by verifying it against relevant documents.
• Adhere to the professional standards established by the Institute of Chartered Accountants in your country during the certification process.
• Uphold ethical standards and maintain integrity when certifying any document.
• Before certifying, confirm the authenticity of the document and the involved parties.
• Maintain thorough documentation of the certification process, including reviewed documents and followed procedures.
• Clearly communicate any limitations of the certificate, ensuring precise and unambiguous language.
• Stay informed about regulatory changes or updates associated with the certification process to remain up-to-date.

Generation of UDIN –

For generating UDIN, the Document type is to be selected as Certificates. Thereafter, the date of signing the document is to be mentioned. There are 3 fields for entering the financial figures / values from the Certificates and the description of the figure/ value so entered. Out of these, 2 fields are mandatory. In case, there is no financial figure / value available in the document, 0 (zero) is to be mentioned and in description it should be clarified that no financial figure / value is available.

It is mandatory to obtain UDIN for all Certificates* issued where the Financial Information/related contents is certified as True and Fair/True and Correct.

Members’ attention is drawn that AASB (Auditing and Assurance Standard Board) of ICAI has already issued Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) with illustrative formats, to be followed by the Practicing Chartered Accountants.

1. Certificates issued on the basis of Financial books of accounts and annual financial statements-Capital Contribution Certificate/net worth certificate.

2. Certificates issued on the basis of Financial books of accounts and annual financial statements – Turnover Certificate.

3. Certificates issued on the basis of Financial books of accounts and annual financial statements -Working Capital Certificate/ Net Working Capital Certificate.

4. Certificates issued on the basis of Statutory records being maintained under Indian Companies Act, 2013 and applicable provisions.

5. Certification of Fair Values of Shares of Company for the scope of merger/ demerger, Buy Back, Allotment of further shares and transfer of shares from resident to non-resident.

6. Certificates for Foreign Remittance outside India in form 15CB.

7. Net worth Certificates for Bank finances.

8. Net worth Certificates for Bank Guarantee.

9. Net worth Certificates for Student Study Loan.

10. Net worth Certificates for Issuance of Visa by Foreign Embassy.

11. Certificate in respect of Liquid Asset under Section 45-IB of RBI Act, 1945

12. Certification of arm’s length price u/s 92 of the income Tax Act, 1961.

13. Certificates for  funds/ Grants utilization  for NGO’s.

14. Certificates for  funds/ Grants utilization  for Statutory Authority.

15. Certificates for funds/ Grants utilization Under FERA/FEMA/other Laws.

16. Certificates for funds/ Grants utilization Charitable trust/institution.

17. Certification under the Income-Tax laws for various Deductions, etc.

18. Certification for claim of refund under GST Act and other Indirect Taxes.

19. Certification under Exchange Control legislation for imports, remittances, ECB,DGFT,EOU, etc.

20. Certificates in relation to initial Public Issue/ compliances under ICDR and LODR.

21. Certificate issued by Statutory Auditors of Banks.

22. Certificate issued by Statutory Auditors of Insurance Companies.

23. Additional Certification by Concurrent Auditors of Banks not forming part of the concurrent audit assignment.

24. Certificate of Short Sale of securities issued by Concurrent Auditors of Treasury Department of Banks.

25. Certificate of physical verification of securities issued by Concurrent Auditors of Treasury Department of Banks.

26. Certificate issued for KYC purpose to banks confirming sole proprietorship.

27. Certificate Regarding  Sources of Income.

28. Certificates for Claiming Deductions and Exemptions under various Rules and Regulations.

29. Certificates issued under LLP Act.

30. RBI Statutory Auditor Certificate for NBFCs.

31. Certificate issued under RERA.

32. Other Certificates.

General DON’Ts of CA Certification

• Refuse certification without thorough verification: Always ensure the accuracy and authenticity of information before certifying any document.
• Uphold professional integrity: Abstain from actions that could compromise your professional ethics or integrity.
• Steer clear of conflicts of interest: Avoid situations where conflicts might arise between your role as a certifier and other personal or professional affiliations.
• Certify within your expertise: Limit certifications to your area of competence and refrain from certifying documents outside your knowledge base.
• Address red flags: Investigate inconsistencies or doubts about provided information before certification.
• Avoid haste: Take the necessary time to carefully review and certify documents, preventing rushed or negligent certification.

Certifying documents as a Chartered Accountant (CA) is a task that demands trust and responsibility. Upholding elevated levels of professionalism and precision throughout the certification process is crucial for building and maintaining credibility. Ensure that the certification aligns with recognized standards and remains accurate.

Additionally, prioritize transparent communication and clearly articulate any limitations associated with the certification. Stay informed about industry updates and changes in regulations to uphold the highest standards. Trustworthiness and accuracy are paramount in the role of a CA, making it imperative to continuously prioritize professional excellence.

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