Importance of Facts in CA Profession.

A CA has to deal with facts and apply principles of various laws, auditing standards, accounting standards, rules regulations etc (principles).

Before talking about facts, let it be illustrated by way of an example.


Remuneration paid to wife. One has to prove that her services are worth the amount of remuneration.

  • An Individual is working as immigration consultant.
  • As per the nature of business, he has to attend calls with Indian embassy in foreign countries as per their timing.
  • Obviously, as per Indian Standard Time, many a times, he has to be at late hours in night.
  • He has engaged services of his better half.
  • Being an individual, he cannot get any other person to do the job at 2 am in the night.


  • The portion upto point no 4 are facts. Point no 5 is an argument.
  • It is not a law that a proprietor must engage his wife for the job.
  • There are other call centers or other immigration consultants who have to attend the calls at odd hours. They employ other people in shifts.
  • Thus the sentence that “Being an individual, he cannot get any other person to do the job at 2 am in the night” is not a fact but an argument. But many times, the client perceives it as a fact.
  • I can assure you that the process of fact finding is mysterious, fascinating, thrilling and sometimes terrifying.
  • I completely believe in the proverb that “Reality is stranger than fiction”.

Process of Fact Finding

  • It is necessary to explain the importance because, in real life, it really takes pains to identify correct, clear, complete, crispy and precise facts.
  •  One needs to objectively carve out the facts from the facts from the humongous data.
  •  Many a times, there is a challenge to distinguish between a fact and an argument.
  •  It is so because the information available is humongous.
  • That does not mean it is complete. Without fail, it includes irrelevant data.
  • It is clouded by the emotions of the persons involved.

It would be apt to demonstrate our perception about importance of facts. We begin with a picture.

Expected Outcome:

Expected Outcome

Data / Information Given

Data / Information Given

Perception of Fact Finding

  1. Though the quantum of facts is small (like the ball), the humongous mammoth of principles (like elephant) can stand only on solid foundation of facts.
  2. If the facts are not correct, clear, complete, crispy and precise, the humongous mammoth of principles will not be able to stand.
  3. Mastery of facts is as important as or rather more important than mastery over the law.
  4. Facts do not cease to exist because they are ignored.
  5. Every man has a right to his opinion. But no man has a right to be wrong on facts.
  6. In deed, the presentation and arrangement of facts constitute half the art of exposition.
  7. Further, the truth of a fact has to born out from irrefutable evidence, in possession of the tax payer.
  8. In our profession, quoting an incorrect fact is a crime.

For further reading, please refer Annexure 3.

Elephant on Ball