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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Auditing »
 Supreme Court puts the spotlight on audit firms
 Auditing to be less of a burden as accountants embrace AI
 CAG's report on GST will be totally paperless
 Time Limit For Completion Of Assessment From The Date Of Special Auditor’s Report Under Income Tax Act, 1961
 Provisioning pertaining to Fraud Accounts
 Tax Audit Report (TAR) Certain exceptions and increased limits according to number of partners and considering nature of activity are desirable
 Cost Auditing Standards [ Cost Audit Documentation (102)] – Part-II
 Conference on Companies Act gets under way
 New bureau to dissolve state-run banks' power to choose auditors
 Foreign Exchange Management (Permissible Capital Account Transactions) (Fourth Amendment) Regulations, 2015
 ICAI forms 'prima facie' view on NSEL auditor
 Firms appoint new auditors in shift to meet new standards
 Cadre restructuring in I-T dept may open scrutiny of closed cases
 RBI issues new guidelines on concurrent auditing at branches

ICAI forms 'prima facie' view on NSEL auditor
September, 09th 2015

The Institute of Chartered Accountants of India (ICAI) has formed a ‘prima facie’ opinion in the complaint against the auditor of National Spot Exchange (NSEL) at the time of the latter’s payments scam.

The institute said in a reply to a query under the Right to Information law) that its director (discipline) had formed the view and this had been sent to the (internal) ‘competent authority’. The decision of the latter is to be reported in due course, it added. The reply did not indicate whether the said view confirmed the alleged misconduct or not.

ICAI has been probing complaints against Mukesh P Shah & Co, the entity which audited NSEL in the run-up to its collapse, following a Rs 5,600 crore payment crisis in July 2013. The first complaint was in September 2013 by one Uday Punj, followed by two more by investors. All these were combined. The auditor responded to these allegations in November 2013. After waiting for several months, the complainants moved the high court here, earlier this year, seeking directions for a quicker response from ICAI.

In May, the latter had assured action within four weeks before the court. In July, as there was no further response, Noida-based IGL Finance, one of the original complainants, filed a query under RTI. ICAI gave a detailed response to this last week.

On why the timelines agreed before the court was not adhered to, ICAI said the prima ficie opinion earlier referred to was pending for a decision and “No such time limit” was prescribed in the Chartered Accountants (Procedure of investigation of professional and other misconduct and conduct of cases) Rules, 2007. Each complaint is processed and decided on the facts, it said.

The complainants have alleged several irregularities in the audit process of NSEL. They said they were misled by the auditor's report, which had said that “the audit procedures (were) performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given to us by the management, we report no fraud on or by the company has been noticed or reported during the course of our audit”.

NSEL had defaulted in payment to its investors. The goods supposedly held in its inventory to back the trades in question were not physically available “and it has resulted in fraud done by the company and gross negligence on the part of the auditor”, goes one charge.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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