Failure to Perform Professional Duties by Concurrent Auditor of UCO Bank during Period of Audit: ICAI Reprimands CA [Read Order]
ICAI Reprimands CA – ICAI – CA – Failure to Perform Professional Duties – Professional Duties – Concurrent Auditor – UCO Bank – Period of Audit – taxscan
ICAI Reprimands CA – ICAI – CA – Failure to Perform Professional Duties – Professional Duties – Concurrent Auditor – UCO Bank – Period of Audit – taxscan
The Institute of Chartered Accountants of India (ICAI) reprimanded a Chartered Accountant (CA) on the ground of failure to perform professional duties by concurrent auditor of the UCO Bank during the period of audit.
The Respondent was appointed as Concurrent Auditor by the UCO Bank, Chennai Main Branch. The Complainant Bank has alleged that the Respondent being concurrent auditor of the UCO Bank, had failed to report serious irregularities committed in advance portfolio of the Chennai Branch of the UCO Bank.
The Respondent could be held liable only for the loans/ advances sanctioned during the period of his concurrent audit and that in the absence of information regarding the details about the disbursal of loan, Director (Discipline) in his prima facie opinion, had restricted to only those allegations against the Respondent that had been reported in relation to loans sanctioned during the period of his concurrent audit.
In the cases of discrepancies, observations included loans sanctioned on the basis of fake ITR/partnership deeds/ sale deeds, it was viewed that identifying fake rubber stamp on ITRs or verifying the genuineness of ITR returns/partnership deeds/ sale deeds being produced with loan documents could not be expected to be identified by a concurrent auditor. However, the Concurrent auditor is expected to be vigilant while conducting audit.
Thus, in light of above, the Committee was of the considered view that the Respondent had not carried out duties assigned to him being concurrent auditor of Complainant Bank on account of which fraud perpetrated in the Branch remained undetected. Such casual approach adopted by the Respondent was highly unbecoming of the Chartered accountant and for the said laxity; the Committee was of the view that the Respondent is Guilty of Professional and Other Misconduct under Item (7) of Part-I of Second Schedule and Item (2) of Part-IV of First Schedule to the Chartered Accountants Act, 1949.
The Committee reprimanded CA V Kandaswamy in view of the professional misconduct.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
