The Institute of Chartered Accountants of India (ICAI) has taken disciplinary action against 241 Chartered Accountants (CAs) in the current financial year, marking a new record. This is a sharp increase compared to 119 cases last year, highlighting ICAI’s stricter stance on ethics and professional misconduct.
ICAI President Charanjot Singh Nanda explained the importance of maintaining high ethical standards in the profession. He stated that the institute is committed to fast and fair disciplinary procedures to ensure that Chartered Accountants follow the rules. Some of the punished CAs have been removed from ICAI membership for up to five years.
This increase in disciplinary actions shows that ICAI is taking stronger measures against unethical practices, financial misconduct, and professional negligence by its members.
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Currently, ICAI can only take action against individual Chartered Accountants, not CA firms. However, the National Financial Reporting Authority (NFRA) has the power to act against firms if their partners are found guilty of wrongdoing. ICAI has urged the government to notify amended provisions under the law that would allow it to take action against firms as well.
ICAI’s president also addressed concerns about who can perform audits. He firmly stated that audit work is exclusive to Chartered Accountants, countering demands from Company Secretaries (CS) and Cost Accountants who seek recognition as “accountants” under the new Income Tax Bill. The issue will be discussed in a committee involving ICAI, the Institute of Company Secretaries of India (ICSI), and the Institute of Cost Accountants of India (ICMAI).
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ICAI is also focusing on making Indian Chartered Accountant firms global players. It is seeking government support to help Indian CA firms expand internationally and compete on a larger scale.
This record-breaking disciplinary action shows that ICAI is working towards a cleaner, more ethical, and globally competitive accounting profession in India.
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