The Disciplinary Directorate of the Institute of Chartered Accountants of India (ICAI) has reprimanded a Chartered Accountant for committing professional misconduct for non-filing of Form 23B regarding the appointment of the Auditor with the Registrar.
A complaint was registered against the Chartered Accountant Mr. Naresh Batra for non-filing of Form 23B with ROC and for committing negligence while certifying the financial statement.
Though the Respondent submitted that it was an unintentional error on his part yet while certifying the financial statement, he was required to be cautious. It is observed that the net profit of Rs.25,89,710 was shown in the Profit & Loss Account and hence, mentioning the word “loss” instead of “Profit” in his audit report (D-3) gives a totally different and opposite view of the financial affairs of the Company. It appears that the Respondent signed his audit report in a casual manner without verifying its contents with the financial statement and the same shows negligence on the part of the Respondent.
In respect of the charge relating to the non-filing of Form 23B with ROC, the Respondent admitted his mistake that Form 23B was not filed with ROC. He also submitted that the same would not be tantamount to misconduct as there was no change in auditor from the previous year and he was a continuing auditor.
Accordingly, the Committee decided held the Respondent guilty with respect to the above charge, falling within the meaning of Clause (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.
CA Debashis Mitra (Presiding Officer), CA. Amarjit Chopra (Member), CA Rajendra Kumar P and CA. Babu Abraham Kallivayalil (Member) after considering the arguments, held that “keeping in view the facts and circumstances of the case, material on record, and submissions of the Respondent before it, the Committee was of the considered view that there was only a technical lapse to which no harm or loss was caused to anyone. Moreover, considering the Respondent’s age and also his health conditions and also his request to take lenient view, the Committee ordered that the Respondent i.e. CA. Naresh Batra (M.NO.072128) to be reprimanded.”
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