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Amend statute of lCAl, lCSl and Bar Council for audit by CAG

Recently Land Deal of Institute of Chartered Accountants of India (ICAI) at Nagpur Come Under Scanner for alleged Irregularities in Purchase of the same. Madras High Court observed that The Judge observed that the records indicated that all was not well with the statutory body.

Advocate B.S.K.RAO

Recently Land Deal of Institute of Chartered Accountants of India (ICAI) at Nagpur Come Under Scanner for alleged Irregularities in Purchase of the same.  Madras High Court observed that The Judge observed that the records indicated that all was not well with the statutory body.  The judge further said transactions involving several crores were not discussed in the council and Government nominees in the council were not consulted before land deal which was cancelled later account of the protest by council members. In View of the same Madras HC has issued notices to CBI, Central Vigilance Commission on charges of irregularities in Institute of Chartered Accountants of India.

Now the Question is should the account of the Apex Accounting Body which is a Statutory Body should be Audited by CAG as in the case of Other Government Institutes and Companies?

Author prays to amend Section 18(5) of The Chartered Accountants Act, 1949, so that accounts of lCAl can be audited by The Comptroller and Auditor General (CAG) of lndia under Article 149 of lndian Constitution (See Exhibit-2).

Similar amendment should also be brought in Section 18(5) of Cost and Works Accountants Act, 1959, Section 18(5) of The Company Secretaries Act, 1980 & Section 12(2 of Advocates Act, 1961 (Bar Council). To sum-up all the bodies passed by Acts of Parliaments should have their accounts audited by The Comptroller and Auditor General (CAG) of India under Article 149 of lndian Constitution. (Supreme authority for Audit under Article 148 of lndian Constitution).

We also found similar clause in Section 10(2) of proposed Legal Practitioners (Regulations & Maintenance of Standards in Professions, Protecting the lnterest of Glients and Promoting the Rule of Law) Act, 2010 published in Ministry of Law & Justice website (See Exhibit-3).

Download Exhibit 2 and 3

Categories: CA, CS, CMA

View Comments (6)

  • Each and everyone of the entities ICAI, ICSI, ICWA and Bar Council very much public authorties and are covered by the RTI. If at all they are left out of audit by the CAG it is pure erroreneous by default. They should neccessarily be subjected to CAG audit here and now and regularly hereafter. They simply are no holy cows that commit no wrong!

  • Do not think Tax Audit is bible to the assessing officer .If it is then what is the necessity to call for records thru isuing notice. Whether Tax Auditor comments in TAR about the jutification of Self assessment Tax and further comments on its short fal.

  • As per Section 18(5) of Chartered Accountants Act, 1949, Accounts of ICAI has to be audited by individual Chartered Accountant regulated by ICAI. How far this is correct ? That is why irregularites of ICAI are not reported in the past. Therefore, Ministry of Corporate Affairs has to amend the statute of ICAI, so that accounts of ICAI should be audited by CAG under Article 149 of Indian Constitution.

  • What is reason accounts of ICAI are audited by its members. ICAI have full control over its members then how can they go against there parental body.
    When a assessee in-person can appear before any court of law. it doesn't matter he is knowing legal complication or not then why assessee is authorized to audit their account books u/s 44ab of income tax act 1961.It is also need to investigation what is reason behind it.

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