The Institute of Chartered Accountants ( ICAI ) recently dismissed allegations claiming forgery of signature on forensic audit reports leveled against a Chartered Accountant ( CA ), citing the lack of corroborative evidence to prove such forgery.
The instant complaint was lodged before the Board of Discipline of the ICAI alleging that the Respondent CA had committed forgery of the Complainant’s signature on seven forensic audit reports including forensic audit reports allotted by Canara Bank, among employment of other illicit methods to receive work assignments from Nationalized Banks, and Governmental and Non-Governmental companies.
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The Complainant, also being a CA, was formerly Managing Partner of the Respondent’s firm and held 80% profit sharing with the subject firm. It was submitted by the Complainant that the Respondent failed to remit the share of profit and conveyance expenses due to the Complainant, and further refused to accept the resignation rendered by the Complainant.
It was averred by the Complainant that the Respondent, being a habitual offender has multiple cases of professional misconduct against him before the ICAI, all pertaining to works from Public Sector Banks and Government Companies tendered by the Respondent.
One of the key submissions raised was that the Respondent had withheld the Complainant’s Digital Signature Certificate (DSC) and instructed Article Trainees within the Respondent’s firm to use the DSC to forge signatures on several forensic audit reports.
Conversely, the Respondent refuted all the allegations pertaining to forgery of signature and non-payment of due amounts while asserting that the ‘allegations of forgery’ leveled against the Respondent are of criminal nature, being ultra vires the jurisdiction of the ICAI.
The ICAI Board of Discipline comprising CA. Rajendra Kumar P, Presiding Officer, Dolly Chakrabarty, IAAS (Retd.), Government Nominee and CA. Priti Savla, Member observed that the the State Bank of India, with whom the subject matter original Forensic Audit Reports lie had affirmed the match of the signatures on the Forensic Audit Reports with that of the Complainant, but refused to part with the original Reports owing to their confidential nature as Bank Records.
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The Board further observed that the allegation of the Respondent’s refusal to honour the resignation tendered by the Complainant does not hold valid ground as the reasons stated are in lieu of age and health related issues and other extraneous details not relevant to the subject matter before the ICAI.
In light of the Complainant’s inability to adduce substantive documentary evidence in support of the alleged signature forgery on the forensic audit reports, the ICAI Board declared the Respondent CA “Not Guilty” of Other Misconduct within Item (2) of Part- IV of First Schedule to the Chartered Accountants Act, 1949 and passed an order for closure of the case.
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