ICAI

ICAI bans Ahmedabad based CA for 2 years for misconduct of gross negligence

ICAI bans Ahmedabad based CA for  2 years for misconduct of gross negligence in performing his professional duties which was upheld by the Gujarat High Court 

The ICAI has notified the removal of the CA found guilty of misconduct from the Register of Members for a period of two years for violation falling under Part I of the Second Schedule to the Chartered Accountants Act, 1949.

It has been further clarified that during the aforesaid period he shall not practise as a Chartered Accountant in terms of the said order of the Hon’ble High Court of Gujarat.

Earlier Hon’ble High Court of Gujarat [ABCAUS  2118 (2017) (11) HC] has upheld the decision of the ICAI holding the CA guilty of professional misconduct. 

In the instant case, the firm of the Chartered Accountant was allotted the audit of a Cooperative Bank (‘Bank’) by the Registrar of Societies.

Subsequently, due to a scam unearthed at the bank, the Registrar carried out a re-audit of the Bank for. Based on the re-audit Report, the Registrar found that the respondent CA had neither disclosed nor reported serious irregularities in the accounts of the Bank and that the respondent CA had failed to disclose material mis-statements which were not disclosed also in the financial statement of the Bank though they were known to him.

According to the Report, the respondent CA had shown gross negligence in performing his professional duties and had failed to obtain sufficient information to warrant the expression of opinion. The Registrar was also of the opinion that the respondent CA had failed to invite the attention to material departures from the generally accepted procedure of audit applicable to the Banks.

Read the ICAI Notification for removal Click Here >>

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