PwC Auditor suspended from ICAI Register for One Year on ground of Professional Misconduct [Read Order]

A former auditor of the Pricewaterhouse Coopers Pvt. Ltd was removed from the register of the Institute of Chartered Accountants of India (ICAI) for one year by the disciplinary committee.

The first allegation against the Chartered Accountant was that during the course of inspection that the M/s Pricewaterhouse Coopers Pvt. Ltd. had received grant (support) amount of US $ 39,30,000/- (INR 17,42,95,5000 and US $ 1,80,00,000/- (MR 79,88,60,0000 in the Financial Year 31st March, 2011 and 31st March, 2012 which were shown in the Financial Year 31st March, 2010 and 31st March, 2011 on the accrual basis, but nothing had been shown or reflected in the Profit & Loss Account by the Company as to how the amount of grant as per agreement has been earned and/or spent and hence the Profit & Loss Account and Balance Sheet could not be stated as true and fair.

Secondly, the disclosure as required for related party transactions during the Financial Year 31st March, 2009 to 31st March, 2011 had not been made with regard to the related party transactions made with M/s Pricewater house Coopers Services Delivery Centre (Kolkata) Private Limited for providing services of Rs.120,32,56,658/- during' the period from 1.7.2010 to 31.3.2012 and for receiving services of Rs.1,50,33,7651- during the period from 1.4.2011 to 31.3.2012.Thus it was alleged that the Respondent had failed to qualify' is audit 'report for non-compliance of Accounting Standard-18 which led to violation of Section 227(3)(d) relating to Section 211(3A) of the Act.

Based on facts, the committee found that there was a difference in the actual amount of services received/rendered vis a vis that reported in the Financial statements together with the fact that the disclosure as regards the related party transactions were not given, it was viewed that the Respondent had failed to exercise due diligence and was grossly negligent in the conduct of his professional duties. Further, he failed to obtain sufficient information which was necessary for expressing an opinion on the Financial Statements of the Company and he also failed to invite attention to the material departure from the generally accepted procedure of audit.

Relying on the findings of the committee, the Disciplinary Committee held that “Keeping in view the facts and circumstances of the case, material on record and representations of the Respondent made before it, the Committee is of the view that the professional misconduct on the part of the Respondent is established and ends of justice can be met if reasonable punishment is given to him. Accordingly, the Committee ordered that the name of the Respondent, CA. Jayanta Bhattacharya (M.No.017916), be removed from the Register of members for a period of 1 year (one year).”

To Read the full text of the Order CLICK HERE

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