MCA

NFRA to take disciplinary action against errant CAs CS CMA- Share your views

NFRA to take disciplinary action against CAs CS CMA. High Level Committee to suggest disciplinary systems revamp for professionals.

On Chartered Accountants Day on 1st July, 2017, PM Narendra Modi had pointed out ICAI’s poor track record on the disciplinary front, stating that during the last 11 years, only 25 CAs had been prosecuted. It was reported that Modi lamented the pendency of more than 1,400 disciplinary cases with ICAI and termed it as a matter of serious concern.

Now, Ministry of Corporate Affairs (MCA) in a press release issued today has stated that actions are initiated against Professionals guilty of fraud and all complaints against them are being reviewed. A High Level Committee (HLC) has been constituted for suggesting revamp of the disciplinary systems of Chartered Accountants (CAs), Company Secretaries (CSs) and Cost Accountants (CMAs).

Also, it has been stated that steps are underway for setting-up National Financial Reporting Authority (NFRA), an independent body to test check Financial Statements, prescribe Accounting Standards and take disciplinary action against said errant professionals.

Does setting-up of NFRA to take disciplinary action against CAs/CS/CMA would bring more transparency and add more value to the profession?

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