Certification of Books of Account without Accurate Verification is Vital Professional Misconduct: ICAI Removes CA from Register and Imposes Fine [Read Order]
Certification of Books of Account without Accurate Verification is Vital Professional Misconduct – ICAI Removes CA from Register and Imposes Fine – TAXSCAN
Certification of Books of Account without Accurate Verification is Vital Professional Misconduct – ICAI Removes CA from Register and Imposes Fine – TAXSCAN
The Institute of Chartered Accountants of India removed Chartered Accountant (CA), Syed Shahul Meeran K from the CA membership Register and imposed a fine on the professional misconduct of certifying books of Account without accurate verification.
It was alleged that the Respondent arranged a false Balance Sheet and Audit Report of M/s Pavai Alloys & Steels (P) Ltd. (“Company”) under the seal and signature of CA. Madhusudan Sardar for the financial year ended 2008 and 2013 and had certified false Stock Statement and Sundry Debtors Statement of the Company as of 31st July 2013.
It was stated that the Company had availed Credit Facility from Indian Bank during the year 2007-08 and thereafter on various occasions till the year 2014 and on 17th July 2014 the Company’s account with Indian Bank became Non-Performing Asset (NPA).
The Committee noted that the Respondent had brought on record certain working papers and copies of ledger accounts based on which he contended to have certified the alleged Stock and Debtors Statements.
It was observed that the Respondent completely omitted to obtain external confirmation for certifying the Debtors’ Statement. It was viewed that the certification of figures merely based on the information given in the ledger completely defeats the purpose of obtaining the certification.
In such circumstances, a chartered accountant instead of verifying the accuracy of data, only certified the figures as shown by the management in the books of accounts signify the casual approach adopted by him in rendering his professional duties.
The Committee comprising CA. (Dr.) Debashis Mitra, Presiding Officer, Mrs. Rani Nair, Shri Arun Kumar, CA. Rajendra Kumar P and CA. Cotha S Srinivas viewed that the misconduct on the part of the Respondent has been held and established within the meaning of Item (7) of Part I of Second Schedule as well as Item (2) of Part IV of First Schedule to the Chartered Accountants Act, 1949
Further ordered that the name of the Respondent CA. Syed Shahul Meeran K (M, No. 229834) be removed for a period of 6 (Six) months from the Register of Members alongwith a fine of Rs. 25,000/- (Rupees Twenty Five Thousand Only) be levied upon him that shall be payable within a period of 3 (Three) months from the date of receipt of the Order.
To Read the full text of the Order CLICK HERE
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