Institute of Chartered Accountants of India’s Disciplinary Committee (Bench-IV) issued an order regarding CA. Anand Prakash Gupta . The Committee found CA. Gupta guilty of professional and other misconduct under the Chartered Accountants Act, 1949. This finding stemmed from two primary issues: his failure to address serious irregularities highlighted by a previous auditor in the Delhi State Taxi Operators Co-operative Thrift Credit and Service Society Ltd. accounts from 2003-04 to 2013-14, and his continuous auditing of the Society for eleven consecutive years, circumventing rules designed to ensure auditor independence. Despite changing firm affiliations, CA. Gupta remained the signing partner, violating the three-year maximum audit period stipulated by Delhi Co-operative Societies Rules. The Committee concluded that this compromised auditor independence and demonstrated negligence in professional duties. Consequently, CA. Gupta was reprimanded and fined Rs. 50,000, to be paid within 60 days.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
(Set up by an Act of Parliament)
[DISCIPLINARY COMMITTEE [BENCH-IV (2024-2025)] [Constituted under Section 218 of the Chartered Accountants Act, 1949]
ORDER UNDER SECTION 218(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.
PR/249/2015/2017/DD/230/2015/DC/821/20181
In the matter of:
Shri Mohinder Pal Singh………Complainant
Versus
CA. Anand Prakash Gupta
M/s Anand & Co.,……Respondent
MEMBERS PRESENT:
1.Ranjeet Kumar Agarwal, Presiding Officer (In person)
2. Shri Jiwesh Nandan, I.A.S (Retd.), Government Nominee (In person)
3. Dakshita Das, I.R.A.S. (Retd.), Government Nominee (Through VC)
4. Mangesh P Kinare, Member (In person)
5. Abhay Chhajed, Member (In person)
DATE OF HEARING : 28th MARCH, 2024
DATE OF ORDER : 16th May, 2024
1.That vide Findings dated 05.02.2024 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 was inter-alia of the opinion that CA. Anand Prakash Gupta (hereinafter referred to as the Respondent”) is GUILTY of Professional and Other Misconduct falling within the meaning of Clause (2) of Part IV of the First Schedule and Clause (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.
2. That pursuant to the said Findings, an action under Section 218(3) of the Chartered Accountants (Amendment) Act, 2006 was contemplated against the Respondent and a communication was addressed to him thereby granting an opportunity of being heard in person/ through video conferencing and to make representation before the Committee on 28th March 2024,
3. The Committee noted that on the date of hearing on 28th March 2024, the Respondent was not present, even though notice of the present meeting was duly served upon him through speed post and email. The Committee also noted that the Respondent had never attended any hearing of the matter during the hearing stage, and had not submitted any written representation on the Findings of the Disciplinary Committee.
4. The Committee considered the reasoning as contained in Findings holding the Respondent ‘Guilty’ of Professional and Other Misconduct.
5. Thus; keeping in view the facts and circumstances of the case and material on record, the Committee held that the Respondent being Auditor of the Society for consecutive eleven years should have given any reasoning/clarification/details or documents on alleged issues highlighted by the auditor of the year 2002-03 to show that the qualification in his audit reports during 2003-04 to 2013-14 was not warranted which he failed to do so. The Committee noted that the Respondent, by resorting to the practice of auditing the Society for eleven consecutive years during 2003-04 to 2013-14, being the partner of different firms, had adopted a method to circumvent the law with the intent to continue as auditor of the Society for a period more than what was prescribed in the Delhi Co-operative Societies Rules. The Committee held that it was clear that the change in auditor of Society after a specified period was contemplated in the Delhi Co-operative Societies Rules with a view to ensure the independence of auditors and the same was compromised in the extant case. Hence, the Professional and Other Misconduct on the part of the Respondent is clearly established as spelt out in the Committee’s Findings dated 05thFebruary 2024, which is to be read in consonance with the instant Order being passed in the case.
6. Accordingly, the Committee was of the view that the ends of justice would be met if punishment is given to him in commensurate with his Professional and Other Misconduct.
7. Thus, the Committee ordered that the Respondent i.e., CA. Anand Prakash Gupta be REPRIMANDED and also imposed a fine of Rs. 50,000/–(Rupees fifty thousand) upon him, which shall be paid within a period of 60 (sixty) days from the date of receipt of the Order.
Sd/-
(CA. RANJEET KUMAR AGARWAL)
PRESIDING OFFICER
Sd/-
(SHRI JIWESH NANDAN, I.A.S. {RETD.})
GOVERNMENT NOMINEE
Sd/-
(MS. DAKSHITA DAS, I.R.A.S.{RETD.})
GOVERNMENT NOMINEE
Sd/-
(CA. MANGESH P KINARE)
MEMBER
Sd/-
(CA. ABHAY CHHAJED)
MEMBER
