Institute of Chartered Accountants of India (ICAI) has imposed a penalty of ₹25,000 on CA Jeetendra Kumar Amar of for professional misconduct in relation to his audit responsibilities. The disciplinary action was taken following findings under Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.
The case arose from concerns over CA Amar’s handling of unverified product advances in the financial statements of a company he audited. During proceedings, the Disciplinary Committee noted that while considering the Professional Fraternity Officer (PFO), it had requested various supporting documents from the respondent. These included details on the nature of the product advances, their breakup, copies of agreements for such advances, and evidence of settlement. However, the Committee observed that CA Amar failed to provide any of these critical documents in response.
The Committee further noted that given the nature of the transactions and the fact that the product advances were unconfirmed and unverified, CA Amar was required, in his capacity as auditor, to either qualify the audit report or issue an adverse opinion. Instead, the respondent issued a clean report on the financial statements and merely disclosed the matter in the schedules attached to the balance sheet.
This omission was viewed as a significant lapse in audit diligence. The Committee concluded that by failing to appropriately modify his audit opinion despite the uncertainty surrounding material financial items, CA Amar had breached his professional obligations. The conduct was deemed to fall within the scope of Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, which relates to failure to exercise due diligence and compliance with relevant auditing standards.
During the disciplinary hearing held on April 2, 2024, CA Amar appeared via video conference from ICAI’s Kolkata Kasba office. He reiterated that he had no new submissions to make beyond those already presented during earlier proceedings. After considering the submissions, the Committee held that professional misconduct was established.
In its order dated June 26, 2024, the Committee imposed a fine of ₹25,000 on CA Amar. The fine is to be paid within 90 days of receiving the order. In the event of non-payment within the stipulated time frame, ICAI has directed that CA Amar’s name be removed from the Register of Members for a period of 30 days.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
JDISCIPLINARY 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/DDI110/2015/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, IAS (Retd.) (Government Nominee)
CA. Chandrashekhar Vasant Chitale, Member
Date of Hearing : 2nd April 2024
Date of Order : 26.06.2020
1. That vide findings under Rule 18(17) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007, the Disciplinary Committee noted that CA. Jeetendra Aman (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 216(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 2nd April 2024.
3. The Committee noted that on the date of the hearing held on 2nd April 2024, the Respondent was present through video conferencing, from ICAI Kolkata, Kasba 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-a-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 or the part of the Respondent is established. Accordingly, the Committee ordered that a fine of Rs.. 25,000/- (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 far 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
