Attention has been drawn to certain issues raised on the certification work done by the members of the profession in the report of Comptroller and Auditor General of India (C&AG) entitled ‘Appreciation of Third Party (Chartered Accountant) Reporting in Assessment proceedings’ (Report No. 32 of 2014).
The issues raised in said report were deliberated in the recent meeting of the Council held from 23rd to 25th December, 2014. The Council was of the view that:
1. Issues raised in the report be studied for initiating a structured and meaningful dialogue with the office of C&AG.
2. Necessary steps be initiated against the erring members wherever any act of professional misconduct is observed.
3. Refer details of all such members to the Disciplinary Directorate, who are said to have done Tax Audit, under section 44AB of the Income Tax Act, 1961, more than the limit prescribed by the Institute.
4. Develop an IT based system in coordination with the authorities concerned especially to obtain the report of total numbers of Tax Audit done by each member to find out the details of the members not adhering to the Institute’s guidelines.
5. Call for such information, as required, from the members invoking authority under the relevant provisions of the Chartered Accountants Act, 1949 and Regulations/ Rules framed thereunder.
6. Keep the communication channels updated especially with the stakeholders so as to protect the interest of the profession.
7. Create a Special Cell with proper staff to deal with these matters in an urgent manner.
V. Sagar
Acting Secretary
The Institute of Chartered Accountants of India
27th December, 2014 (Souirce – ICAI)
It is seen from the membership number that most of the members are senior people. And how is it possible to sign more than 2000 TARs.
Institute have to take action by forming a intelligence department in the institute because some freshers are willing to establish their own practice but when this kind of professional misconduct are going on how can any fresher grab a business for themselves.
There should be a ban of 2 years from practice for all CA’s who have signed in excess of the limit whether the limit exceeds by one audit, 10 audits or 100 audits.