ICAI finds CA Guilty of Misconduct on Non-Mentioning of Absence to keep Books of Accounts and Registers by Society in Audit Report [Read Order]

The Institute of Chartered Accountants of India (ICAI) found Chartered Accountant (CA) guilty of misconduct on non-mentioning of absence to keep books of accounts and registers by society in Audit Report.

The Committee noted that in the present case, the respondent, Gaurav Sureshkumar Agarwal (CA) was held Prima-Fade Guilty of Professional Misconduct falling within the meaning of Item (7) of Part 1 and Item (1) of Part 11 of the Second Schedule to the – Chartered Accountant Act, 1949 by Director (Discipline) on the allegations that the Respondent had committed serious mistakes while conducting the Audit of the Society for the financial year 2012-13 and the audit report so furnished by him was wrong and misleading.

The Respondent was also found Guilty on the allegation that he in his Audit report failed to report that the office bearers of the society had not maintained the books of accounts and the statutory registers. In addition to this, it is also alleged that even though the office bearers of the society did not maintain any vouchers for the expenses carried out by the Society, still the accounts were audited by the Respondent and that too without reporting the same in the Audit report and the Respondent accepted the audit assignment without obtaining any appointment letter.

The Decision was made by Amarjit Chopra, Government Nominee and Babu Abraham Kallivayalil, Member. The Bench observed that “On considering the documents and submissions on record it is decided that the Respondent Gaurav Sureshkumar Agarwal is held Guilty of Professional Misconduct falling within the meaning of Item (7) of Part I and Item (1) of Part II of the Second Schedule to the Charterer Accountants Act, 1949.”

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