professional misconduct

What are Professional Misconducts of a Chartered Accountant – Part -3

CA, CS, CMA - Professional Misconducts of a Chartered Accountant – Don’ts 1. CA in practice shall be deemed to be guilty of professional misconduct, if he expresses his opinion on financial statements of any business or any enterprise in which he, his firm or a partner in his firm has substantial interest 2. A member is a director […]...

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Is “Zero Outstanding” of Audit Fee necessary before Signing Audit Report?

CA, CS, CMA - The Word of Caution and the Good News for Auditors: The auditor is now required to ensure zero outstanding of audit fee before signing current year audit report as per the Revised Code of Ethics. Legal Position as per Code of Ethics, 2019 Section 410.7 A1 A self-interest threat might be created if a significant […]...

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Revised code of ethics & its importance in CA profession

CA, CS, CMA - While the revised Code retains the fundamental ethical principles from the earlier code, it covers refreshed approach and contains certain new substantially revised requirements. The part shown in requirements establish general and specific obligations to be complied with by the members, while the application material provides the context...

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Regularization of Firms & Professional Immunity to Chartered Accountants

CA, CS, CMA - In India, majority of business class population comes from middle class and what business they do is of no relevance here but how they do is of utmost relevance. We all know the concept of sole proprietorship and partnership firms and yes this “firm” is the way in which how majority people work. Did you […]...

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F&O Trading Allowed For CA in Practice or Not

CA, CS, CMA - Whether CA in Practice is allow to do trading under F&O segment ? As per Clause 11 of Part 1 of the First Schedule of The Chartered Accountant Act, 1949  A Chartered Accountant in Practice shall be deemed to be guilty of professional misconduct if he engaged in any business or occupation other than profession […]...

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Advisory on Use of designation Chartered Accountant or prefix CA

CA, CS, CMA - Ethical Standards Board The Institute of Chartered Accountants of India 22nd October, 2022 Advisory Sub.: Use of designation “Chartered Accountant” or prefix “CA” by members while expressing views on professional/non-professional matters publicly including on social media 1.  A Firm of Chartered Accountants (R...

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Volume-I of Code of Ethics, 2019 for CAs Applicable wef 01.10.2022 with changes

CA, CS, CMA - Disclosure is required where for two consecutive years, gross annual professional fees from an audit client represent more than 40% of total fees of firm....

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What are Professional Misconducts of a Chartered Accountant – Part 1

CA, CS, CMA - A Practicing Chartered Accountant abstain from soliciting clients or professional work either directly or indirectly by circular, advertisement, personal communication, or interview or by any other means....

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ICAI Defers certain provisions of Volume-I of Revised Code of Ethics, 2019

CA, CS, CMA - ICAI Council decided that the applicability of provisions related to 1. Responding to Non-Compliance with Laws and Regulations (NOCLAR) 2. Fees – Relative Size and 3. Tax Services to Audit Clients of Volume-I of Code of Ethics, 2019 be further deferred for a period of six months (i.e. till 30th September, 2022) to ensure effective...

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Clarification with regard to CA/CA Firms registering on GeM Portal

CA, CS, CMA - It is hereby clarified that the Chartered Accountants in Practice/Firms of chartered accountants are permitted to register on GeM Portal for rendering professional services. The information being published on the portal should be in compliance with the provisions of Code of Ethics....

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Rule 12 of CA rules not debar Director of Discipline from entertaining 7 year old complaint

Ashish Agarwal Vs Institute of Chartered Accountant of India (Delhi High Court) - Held that rule 12 Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007 does not expressly debar the Director Discipline from entertaining a complaint merely because it may relate to acts of misconduct committed seven years prior to...

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HC upheld removal of CA member for other misconduct

Institute of Chartered Accountant of India Vs Shri. P.P. jay (Karnataka High Court) - Institute of Chartered Accountant of India Vs Shri. P.P. jay (Karnataka High Court) ICAI submitted that the report of the Institute be accepted as the respondent has been found to be guilty of grave misconduct and the penalty has been imposed on the respondent commensurate to the misconduct, which h...

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Adjudication of correctness of CA’s report by Disciplinary committee of ICAI, no need once the report passed judicial scrutiny

Wholesale Trading Services P Ltd Vs The Institute of Chartered Accountants of India (Delhi High Court) - The court sanctioned the Scheme of Amalgamation vide judgement dated 26.03.2015 and it is apparent that the Court found no fault with or falsity in the report. Once the report passed the threshold of judicial scrutiny, there was no reason why the Disciplinary Committee of ICAI should have adjudicate...

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ICAI Should Give Reasons for its Decisions to De-Register A CA: SC

D.K. Agrawal Vs Council of the Institute of Chartered Accountants of India (Supreme Court of India) - D.K. Agrawal Vs Council of Institute of Chartered Accountants of India (Supreme Court of India) Hon’ble Supreme Court held that the Council of Institute of Chartered Accountants of India (Respondent) needs to necessarily record reasons in its report as to why a CA must be de-registered. It has bee...

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SC transfers petitions challenging validity of Tax Audit Limit of 60

The Institute of Chartered Accountants of India & Ors. Vs. Shaji Poulose & Ors. (Supreme Court) - The Institute of Chartered Accountants of India & Ors. Vs. Shaji Poulose & Ors. (Supreme Court) In the writ petitions, which are sought to be transferred, writ petitioners have challenged validity of Chapter VI of Guidelines No.1‑CA(7)/02/2008 dated 08.08.2008 issued by the Council of peti...

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ICAI imposes fine on 4 Chartered Accountants for Professional Misconduct

No. PPR/10/N/2013/DD/9/N/INF/2013/BOD/275/2017, No. PPR/P/259/2017/DD/243/TAMC/INF/2017/DC/1100/2019, No. PR/88/2016/DD/129/2016/DC/761/2018, No. PPR/P/111/2017/DD/95/TAMC/INF/2017/DC/1224/2020 - (28/04/2023) - Ordered for removal of name of CA. Pradeep Kumar Manglik from Register of Members for a period of 3 (Three) months and also imposed a fine of Rs. 1,00,000...

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NFRA penalises & debarred CA for Audit failures in violation of law & SA

Order No. NF-23/30/2021/2 - (28/04/2023) - NFRA imposes penalty of Two Lakhs on CA Hemant Khator Swami who was  Engagement Partner for the statutory audit of Women Next Loungeries Ltd for Financial Year 2016-17 for Audit failures and also debarred him for two years from being appointed as an auditor or internal auditor or from undertaking a...

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NFRA penalises and debarred CA for Audit failures

Order No. NF-23/30/2021 - (28/04/2023) - NFRA imposes penalty of Two Lakhs on CA Narayan Prasad Swami who was  Engagement Partner for the statutory audit of Women Next Loungeries Ltd for Financial Year 2017-18 for Audit failures and also debarred him for two years from being appointed as an auditor or internal auditor or from undertaking ...

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NFRA imposes 1 Crore Penalty on CA Firm & 5 Lakh on Partner

Order No. NF-23/14/2022 - (26/04/2023) - NFRA’s investigations inter alia revealed that the TDL’s Auditors for the FY 2018-19, had failed to meet the relevant requirements of the Standards on Auditing (‘SA’ hereafter) in a number of significant aspects and demonstrated a serious lack of competence. They failed to ev...

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NFRA penalises Statutory Auditor of Brach of DHFL for accepting legally invalid appointment

NFRA Order No. NF-21/1/2022 - (13/04/2023) - NFRA’s investigations revealed that the appointment of none of the 33 branch auditors was approved at the Annual General Meeting (AGM) of DHFL, as required by the Act. The audit firm and CA Mathew Samuel accepted the appointment, portrayed themselves as “Branch Statutory Auditor” i...

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Recent Posts in "professional misconduct"

ICAI imposes fine on 4 Chartered Accountants for Professional Misconduct

No. PPR/10/N/2013/DD/9/N/INF/2013/BOD/275/2017, No. PPR/P/259/2017/DD/243/TAMC/INF/2017/DC/1100/2019, No. PR/88/2016/DD/129/2016/DC/761/2018, No. PPR/P/111/2017/DD/95/TAMC/INF/2017/DC/1224/2020 28/04/2023

Ordered for removal of name of CA. Pradeep Kumar Manglik from Register of Members for a period of 3 (Three) months and also imposed a fine of Rs. 1,00,000...

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NFRA penalises & debarred CA for Audit failures in violation of law & SA

Order No. NF-23/30/2021/2 28/04/2023

NFRA imposes penalty of Two Lakhs on CA Hemant Khator Swami who was  Engagement Partner for the statutory audit of Women Next Loungeries Ltd for Financial Year 2016-17 for Audit failures and also debarred him for two years from being appointed as an auditor or internal auditor or from undertaking any audit in respect of […]...

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NFRA penalises and debarred CA for Audit failures

Order No. NF-23/30/2021 28/04/2023

NFRA imposes penalty of Two Lakhs on CA Narayan Prasad Swami who was  Engagement Partner for the statutory audit of Women Next Loungeries Ltd for Financial Year 2017-18 for Audit failures and also debarred him for two years from being appointed as an auditor or internal auditor or from undertaking any audit in respect of […]...

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NFRA imposes 1 Crore Penalty on CA Firm & 5 Lakh on Partner

Order No. NF-23/14/2022 26/04/2023

NFRA’s investigations inter alia revealed that the TDL’s Auditors for the FY 2018-19, had failed to meet the relevant requirements of the Standards on Auditing (‘SA’ hereafter) in a number of significant aspects and demonstrated a serious lack of competence. They failed to evaluate their potential conflict of inter...

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NFRA penalises Statutory Auditor of Brach of DHFL for accepting legally invalid appointment

NFRA Order No. NF-21/1/2022 13/04/2023

NFRA’s investigations revealed that the appointment of none of the 33 branch auditors was approved at the Annual General Meeting (AGM) of DHFL, as required by the Act. The audit firm and CA Mathew Samuel accepted the appointment, portrayed themselves as “Branch Statutory Auditor” in all communications with the Company an...

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CA penalised for not complying with principles & procedures laid down in SAs

Order No. NF-21/1/2022/02 31/03/2023

Auditor not complied with the principles and procedures laid down in the SAs, had not maintained proper audit documentation and displayed flawed understanding and interpretations of the various stipulations in the law and standards in an unprofessional manner that established the EP's professional misconduct in terms of section 132 (4) of...

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NFRA penalises & Debar Auditor for violating several Standards on Auditing

Order No. NF-21/1/2022/01 31/03/2023

Auditor violated several Standards on Auditing (SA) that are required to be followed during conduct of an audit of historical financial information and in providing an auditor's certificate....

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ICAI removes name of 10 Members with effect from 16th December, 2022

Notification No. PR/91/14/DD/118/14/DC/469/2016, No. PPR/P/63/16/DD/32/INF/16/DC/1290/2020, No. PR/211/12/DD/104/13/DC/454/16, No. PR/76/14/DD/96/14/DC/554/17, No. PPR/NP/76/18/DD/204/INF/18/DC/1375/2020, No. PPR/P/191/17/DD/175/TAMC/INF/17/DC/1111/2019, No. PPR/P/81/16/DD/62/INF/16/DC/1073/2019, No. PR/G/266/17/DD/232/17/DC/1248/2019, No. PR/G/26/18/DD/49/18/DC/1142/2019, No. PPR/P/121/17/DD/105/TAMC/INF/17/DC/1306/2020 16/12/2022

ICAI removes name of 10 Members with effect from 16th December, 2022 In terms of the provisions of Section 21B(3) of the Chartered Accountants Act, 1949 read with Rules 18(17) and 19(1) of the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007. THE INSTITUTE OF CHARTER...

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ICAI removes name of 12 Members for Professional & Other Misconduct

Notification No. PPR/P/30/W/13/DD/36/INF/2015/DC/701/2017 and 11 other notifications 11/11/2022

ICAI removes name of 12 Members for Professional & Other Misconduct vide various notifications issued on 11th November, 2022 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (Set up by an Act of Parliament) NOTIFICATION New Delhi, the 11th November, 2022 (CHARTERED ACCOUNTANTS) No. PPR/P/30/W/13/DD/36/INF/2015/DC/701/2017:—In terms o...

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Advisory on Use of designation Chartered Accountant or prefix CA

Ethical Standards Board The Institute of Chartered Accountants of India 22nd October, 2022 Advisory Sub.: Use of designation “Chartered Accountant” or prefix “CA” by members while expressing views on professional/non-professional matters publicly including on social media 1.  A Firm of Chartered Accountants (R...

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