The Disciplinary Committee (Bench-I) of the Institute of Chartered Accountants of India (ICAI) has imposed a penalty on Chartered Accountant Jeetendra Kumar Amar . The committee, in its order dated June 26, 2024, has levied a fine of ₹25,000 on Mr. Amar for professional misconduct. Should he fail to pay the fine within 90 days, his name will be removed from the Register of Members for a period of thirty days.
Misconduct Related to Unconfirmed Product Advance
The finding of professional misconduct against Mr. Amar stems from his audit of a financial statement that included an “unconfirmed and unverified product advance.” The Disciplinary Committee had requested various documents and details from Mr. Amar regarding the nature, breakup, and settlement of this product advance, but he failed to submit any of the requested documentation.
The committee concluded that given the unconfirmed and unverified nature of the transaction, Mr. Amar was obligated to either qualify his audit report or provide an adverse opinion. Instead, he issued a clean audit report, merely disclosing the matter in the schedules of the Balance Sheet. This conduct was viewed adversely by the committee, leading to the finding of professional misconduct under Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.
Committee’s Decision
During the hearing held on April 2, 2024, Mr. Amar participated via video conferencing and stated that he had no new submissions beyond what he had already presented during the course of the hearing. After reviewing all submissions and documented evidence, the committee determined that the professional misconduct was established. The imposed fine and the potential removal from the Register of Members underscore the serious view taken by the ICAI on auditors failing to adhere to reporting standards, especially concerning unverified financial figures.
THE INSTITUTE OF CHARTERED ACCOUNTANTS
(Set up by an Act of Parliament)
[DISCIPLINARY COMMITTEE (BENCH-I (2024-2025)]
[Constituted under Section 21B of the Chartered Accountants Act, 19491]
ORDER UNDER SECTION 21B(3) OF THE CHARTERED ACCOUNTANTS ACT, 1949 READ WITH RULE 19(1) OF THE CHARTERED ACCOUNTANTS (PROCEDURE OF INVESTIGATIONS OF PROFESSIONAL AND OTHER MISCONDUCT AND CONDUCT OF CASES) RULES, 2007.
[PPR/135/2015/DD/110/2015/DC/1513/2021]
In the matter of: –
CA. Jeetendra Kumar Amar in Re:
…..Respondent
MEMBERS PRESENT: –
CA. Charanjot Singh Nanda, Presiding Officer
Shri Jugal Kishore Mohapatra, lAS (Retd.) (Government Nominee)
CA. Chandrashekhar Vasant Chitale, Member
Date of Hearing : 2nd April 2024
Date of Order : 26.06.2024
1. That vide findings under Rule 18(17) of The telic Accounts (Procedure of Investigations of Professional and Other Misconduct and Conduct Cases Rule 2007, the Disciplinary Committee noted that Jeetendra Kumar Amar (hereinafter referred to as the Respondent”) was held GUILTY of professional misconduct falling within the meaning of Item (7) of Part I of Second Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said findings, an action under Section 21E3(3) of the Chartered Accountants (Amendment) Act, 2006 was contemplated against the Respondent and communication was addressed to him thereby granting opportunity of being heard in person / through video conferencing and to make written & verbal representation before the Committee on 2′ April 2024.
3. The Committee noted that on the date of the hearing held on 2′ April 2024, the Respondent was present through video conferencing, from ICAI Kolkata, Kasab Office, and he made his verbal submission on the findings of the Disciplinary Committee.
4. In his verbal submission the Respondent inter alia stated that whatever he wanted to say, he has already said during the course of the hearing and there are no new submissions.
5. The Committee considered the reasoning as contained in the findings holding the Respondent Guilty of professional misconduct vis-à-vis verbal submissions of the Respondent.
6. Keeping in view the facts and circumstances of the case, material on record including verbal and written submissions of the Respondent, the Committee is of the view that professional misconduct on the part of the Respondent is established. Accordingly, the Committee ordered that a fine of Rs. 25,0001- (Rupees Twenty-Five Thousand only) be imposed upon the Respondent i.e. CA. Jeetendra Kumar Amar to be paid within 90 days of receipt of the Order. If the Respondent fails to pay the fine within the stipulated period, his name be removed from the Register of Member for a period of thirty days.
Sd/-
(CA. CHARANJOT SINGH NANDA)
(PRESIDING OFFICER)
Sd/-
(SHRI JUGAL KISHORE MOHAPATARA),
I.A.S. (RETD.), (GOVERNMENT NOMINEE)
Sd/-
CHANDRASHEKHAR VASANT CHITALE
(MEMBER)
Place : 26.06.2024
Date : New Delhi
