Nearly 601 Chartered Accountants Under Investigation for Professional Misconduct, Reveals ICAI Report
The Board of Discipline issued punishments in 63 cases, while the Disciplinary Committee imposed penalties in 142 cases
ICAI – Chartered Accountants – Institute of Chartered Accountants of India – Taxscan
ICAI – Chartered Accountants – Institute of Chartered Accountants of India – Taxscan
According to the 75th Annual Report of the Institute of Chartered Accountants of India ( ICAI ), approximately 601 Chartered Accountants ( CAs ) are currentlys being investigated for professional misconduct.
Two key bodies handle professional misconduct cases at the ICAI: the Board of Discipline and the Disciplinary Committee. These cases may involve individual Chartered Accountants ( CAs ).
While the report provides detailed statistics on the number of cases reviewed, investigated, and penalised, it does not specify how many individual CAs or firms have been penalised. Therefore, the figure of 601 CAs under scrutiny may be an estimate and could potentially increase as more cases are resolved.
When the Board of Discipline or the Disciplinary Committee finds evidence of professional misconduct, they have the authority to either impose penalties or debar the CA or firm from practising for a specific period or permanently. For less serious offences, the bodies may issue a reprimand instead of harsher punishments.
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The Board of Discipline, set up under Section 21A of the Chartered Accountants Act, 1949, is responsible for looking into complaints and information about potential misconduct. In the past year, it reviewed 418 cases where the Director (Discipline) formed an initial opinion that there might be misconduct. These cases include those handled under specific rules like Rule 6 and Rule 12. The Board completed investigations into 126 of these cases, and awarded punishment for 63 cases for misconduct.
The Disciplinary Committee, established under Section 21B of the same Act, deals with more serious offences. It reviewed 183 cases in which the Director (Discipline) also formed an initial opinion. During the year, the committee completed investigations into 309 cases, with 142 cases being found guilty and penalised. Some of these cases were from previous years.
ICAI’s Disciplinary Directorate, which is responsible for investigating professional or other misconduct, handles formal complaints submitted through official forms or based on information provided. This process follows the rules set out in the Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and Conduct of Cases) Rules, 2007.
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Between April 2023 and June 2024, the Board of Discipline held 55 meetings, both physical and virtual, to discuss and conclude its inquiries. The Disciplinary Committee, during the same period, held 133 meetings to review cases, including those from the past.
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