ICAI Central Council Member Dhiraj Khandelwal tweets on ‘X’ about 1 Cr NFRA Penalty on Firm

The CCM member addressed concerns regarding the NFRA order imposing a significant penalty on Audit Firm M/s Dhiraj & Dheeraj
ICAI Central Council Member - Dhiraj Khandelwal tweets - X - NFRA Penalty on Firm - taxscan

A Central Council Member ( CCM ) of the Institute of Chartered Accountants of India ( ICAI ), Dhiraj Khandelwal has recently addressed concerns regarding the NFRA order imposing a significant penalty on Audit Firm M/s Dhiraj & Dheeraj. Amidst the controversy, Khandelwal has provided a detailed clarification, shedding light on the facts and nuances of the case, on X ( formerly Twitter ).

“There is lots of discussion on NFRA order , just to clarify I am not in active practice since 2010  however actively associated and working for my profession / Institute for  a period of  > 20 yrs and presently not a partner in firm but I am having my own startup called  http://Tradereboot.com.

However there was love and support from professionals and hatered from some section as finding another reason to tarnish my image .

I have gone though this order .. here is the facts ;

The order under  refrence is a height of penalty for difference of opinion on a Qualified Audit Opinion OR adverse opinion , the Issue involved are due to difference of opinion :

1. Whether adverse opinion as per NFRA v/s qualified opinion as per Auditor.

2. ⁠Adequacy of ECL provision  judgement on standard Loan assets including some overdue loan it’s again judgemental issue.

3. ⁠Audit planning meeting in time between NOC requested from Previous Auditor till received .

4. ⁠Agreement between EP and EQCR on some important audit issue after a detailed discussion however not documented..

5. ⁠Clean report issued by Resigned Auditor in pervious years and periods before filing 143(12) fot not getting certain details and information and explanations but not specifying any specific fraud v/s qualified report

6. ⁠Qualified report issued for all Loan sanctioned and disbursed before appointmentAll the transaction happened before resigning of the previous auditor v/s unmodified opinion issued by the Previous auditor in audit reports for yearly as well as Limited Reviews.

Note : I was one of the first person to oppose NFRA ,had voice in council and was detained by mumbai police for 6hrs due to dharna”, explained Central Council Member Dhiraj Khandelwal.

Many Chartered Accountants such as Abhishek Raja Ram tweeted on ‘X’ in support of the Central Council Member.

Further updates are awaited.

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