ICAI Reprimands CA with Fine for Non-Communication with Previous Auditor before Accepting Appointment
The Institute of Chartered Accountants of India reprimands Chartered Accountants (CA) with a fine for non-communication with the previous auditor before accepting the appointment. It was alleged that the Respondent had taken advances from the Entity on 31st January 2018 of INR 3,00,000/- which were still outstanding as of February 2019 i.e. during the financial year 2018-19, the period...
The Institute of Chartered Accountants of India reprimands Chartered Accountants (CA) with a fine for non-communication with the previous auditor before accepting the appointment.
It was alleged that the Respondent had taken advances from the Entity on 31st January 2018 of INR 3,00,000/- which were still outstanding as of February 2019 i.e. during the financial year 2018-19, the period of audit conducted by the Respondent.
The Committee observed that the letter dated 11th October 2019 sent by the Respondent to the Complainant requesting for a NOC, has not been properly acknowledged, but rather only initials (without mentioning the name of the receiver) have been made by some unknown person, and that too without mentioning any date of receipt thereon. The Complainant denied the validity of these signatures.
The Committee noted that the Respondent accepted the audit on 23rd October 2019. The Committee noted that even if the Respondent’s contention that the hand-delivered letter to the Complainant on October 11 is assumed to be correct, he has failed to explain why he needed to accept the appointment before 26th October 2015, i.e., without waiting for the 15 days mentioned in the said letter.
The Committee noted that the Respondent had not brought on record any clear facts that may show that he was discharged from his liability before 1s April 2018 rather, he failed to justify the alleged loan and advance to be miscellaneous expenses. The Committee noted that benefit cannot be extended to him merely on tally entry passed by him as per the advice of one of the partners of the entity (witness).
The Coram comprises CA. (Dr.) Debashis Mitra, Presiding Officer, Mrs Rani Nair, Shri Arun Kumar, CA. Rajendra Kumar P and CA. Cotha S Srinivas ordered that the Respondent, CA. Mudassar Siddique (M. No. 421213), be reprimanded along with a fine of Rs. 5,000/- (Rupees Five Thousand Only).
To Read the full text of the Order CLICK HERE
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