ICAI removed a CA's name from its register for one year for failing to report ₹1,150 crore of fund siphoning and audit lapses, including inadequate assessment of going concern risks.
ICAI Suspends CA for Failure to Report ₹1,150 Crore Fund Siphoning
The Institute of Chartered Accountants of India (ICAI) has removed the name of a practicing chartered accountant from its register for one year for serious audit lapses, including failure to report large-scale financial irregularities amounting to ₹1,150 crores.
The Disciplinary Committee found that the CA, engaged in a statutory audit, did not properly assess going concern uncertainties and failed to disclose material financial siphoning in the audited financial statements. The misconduct was held to violate several clauses of ICAI’s Code of Ethics, particularly those relating to due diligence, integrity, and professional competence under the Chartered Accountants Act, 1949.
This decision sends a strong message about auditor accountability in corporate fraud cases. For practitioners, it underscores the non-negotiable duty to report material irregularities even in the face of management pressure. The suspension reflects growing regulatory scrutiny over audit quality in high-value fraud cases.
Citations
- Chartered Accountants Act, 1949, Sections 21, 22
