CNBC-TV18 learns that the Institute of Charted Accountants of India (ICAI) has approached the Ministry of Company Affairs (MCA) for amendment of the CA Act.
The institute proposes 10-12 amendments, seeking action against erring audit firms. It also demands action on the auditors ‘connivance with management’ as well as ‘repetitive negligence’. Punishment to these offences would include suspension, fine and even firm closure, sources add.
If these amendments are factored in the CA Act, it would give greater powers to the institute.
However, it is also being leant that the MCA is yet to respond to ICAI’s proposals.