ICAI removed a chartered accountant's name from the register for one year for failing to report material financial irregularities and going concern uncertainties in a ₹1,150 crore siphoning case.
ICAI Imposes Year-Long Removal on CA for Audit Lapses
The Institute of Chartered Accountants of India (ICAI) has ordered the removal of a CA's name from the register for one year for professional failure in detecting and reporting ₹1,150 crore in financial siphoning during statutory audits.
The Disciplinary Directorate found the auditor violated several provisions of the Companies Act, 2013, and ICAI's auditing standards by not evaluating material uncertainties related to the company’s going concern status and failing to disclose significant financial irregularities in the audit report.
"The auditor's silence amounted to professional negligence and breach of fiduciary duty,"
The order underscores the critical role of auditors in corporate governance and financial transparency. Practitioners are reminded of their duty to exercise due diligence, particularly in high-risk sectors, and to report anomalies under Section 143 of the Companies Act, 2013.
Citations
- Companies Act, 2013, Section 143
