Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: list of goods taxed at 4% :: form 3cd :: VAT Audit :: VAT RATES :: articles on VAT and GST in India :: empanelment :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TDS :: TAX RATES - GOODS TAXABLE @ 4%
 
 
ICAI »
 Extension of last date for submission of application forms for Information Systems Audit-Assessment Test (ISA-AT), upto 10th December 2016.
 Four Weeks Residential Programme to be held from 28th January, 2017 to 24th February, 2017 at Centre of Excellence, Hyderabad for Women Participants only.
 CPE Events 5th December - 10th December 2016
 Here's how your employer can help you save tax
 Introduction of facility for online submission of requests for issue of duplicate mark sheets/pass certificates.
 ICAI invites suggestions on revised Model GST Law
 Guidance Note on Reports in Company Prospectuses (Revised 2016) issued by the Auditing and Assurance Standards Board
 President's Message - December 2016
 Ind AS Transition Facilitation Group (ITFG) Clarification Bulletin 6
 Announcement regarding registration as an Insolvency Professional with the Indian Institute of Insolvency Professionals of ICAI
 CPE Events 28th November - 3th November 2016

Amended ICAI Act good enough
January, 13th 2009

The Institute of Chartered Accountants of India (ICAI) is the regulating body in India to deal with matters relating to professional or other misconduct of its members by virtue of the powers vested in The Chartered Accountants
Act, 1949 and the relevant regulations framed thereunder.

Every member of the ICAI, be in practice or in employment, is governed by the Code of Ethical Conduct. Any member holding Certificate of Practice and carrying out an attest function is also expected to strictly adhere to the Auditing and Assurance Standards (AAS) laid down by the ICAI, failing which he is made accountable through the disciplinary mechanism.

In respect of cases registered up to November 17, 2006, the ICAI, on receiving any information or complaint, could initiate disciplinary action against the concerned member, who has conducted the audit/signed the audit report. In every case, the council of the ICAI is to be involved before the matter is referred to for enquiry by the disciplinary committee and even after the report is received from the committee.

The Council has to provide the member held guilty, an opportunity of being heard twiceonce for considering the report of the disciplinary committee and again to decide on the punishment to be awarded. In case of offences listed in the Second Schedule, i.e. offences which are grave in nature, the council has to refer the matter to the
high court with a recommendation on the punishment to be meted out.

In view this complex procedure and time taken to collect evidence, cases like the one pending in the Global Trust Bank matter are still in progress. Thanks to the ministry of corporate affairs and the ICAI, who took proactive steps to do away with such long-drawn processes and bring about changes in law in 2006 by amending the Act, facilitating expeditious conclusion of disciplinary action in respect of cases registered after November 17, 2006.

As per the amended law, the Director of Discipline shall decide on referring a matter to the disciplinary board or to the disciplinary committee, depending on whether the offence is falling under the First or Second Schedule. The Board/Committee is empowered not only to give a finding but also to pronounce the punishment, if the member is found guilty. The punishment can extend to permanent removal from the membership of the ICAI and also a penalty of up to Rs 5 lakh.


The aggrieved member can file an appeal to the Appellate Authority specially constituted for this purpose under the Act, whose order shall be final and conclusive. The revised procedure, which eliminates the role of the council and the high court, would ensure that the disciplinary action to be taken in the Satyam case against the auditors of the company and the officers concerned of the company, who are CAs, can be concluded within a matter of few months.

In the international scenario, there are countries like the US, where the disciplinary action by a regulatory authority is directed against an auditing firm, whereas in India, it is against the partners of the firm/the members who conducted the audit and signed the balance sheet.

ICAI is not empowered to take action against the firm but the government and other regulating authorities can take appropriate action, either suo motto or at the initiative of ICAI, under the respective enactments viz, Companies Act, Indian Penal Code, SEBI Act etc.

Regulatory authorities like C&AG, RBI and SEBI can also black-list any firm from being engaged by the PSUs, banks and listed companies respectively. In matters of professional ethics, timely action by ICAI would help build trust and repose confidence of the public in the profession.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions