GET BACK TO PROFESSIONAL ETHICS

Last updated: 29 February 2008

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GET BACK TO PROFESSIONAL ETHICS NEED TO THINK OF PROFESSIONAL ETHICS The Council of the Institute of Chartered Accountants of India Vs. Rishi K. Gupta(Chartered Accountants case No.1 of 1992) decided on 20-07-2000 by high court of Delhi under Sec. 21(6) of Chartered Accountants Act,1949. Facts of the case: The General Manager (Inspection and Finance), State Bank of Patiala filed a complaint U/s. 21 of Institute of Chartered Accountants Act, 1949 to Institute of Chartered Accountants who were allotted the Audit work of Jhajjar, Rohtak and Hisar branches of the Complainant – bank for the year ended 1984. They complained that the said audit firm had submitted bogus bills/receipts in claim of their halting expenses for the audit of said branches as found on the investigation by the Compalinant – Bank Vigilance Department. Shri. Rishi K. Gupta, a member had submitted a written statement in response of this. The Council of the Institute prima-facie opined that the respondent was guilty of conduct and has referred the case to the Disciplinary Committee. The Disciplinary committee after recording the case and hearings of the submissions made on behalf of the parties, came to conclusion that the respondent is guilty of misconduct within the meaning of Sec. 22 read with Sec.21 of Institute of Chartered Accountants Act, 1949. The council after considering the report of disciplinary committee along with written representations and oral submissions of the respondent came to conclusion that the respondent is guilty of misconduct under the said sections and recommended to remove the respondent as a member from Institute of Chartered Accountants of India for 15 days. The case is referred to High court of Delhi at New Delhi as required U/s. 21(5) of the Act with the recommendation of council. The high court proceded into the matter and observed that misconduct in this case under subsection (5) of Sec.21 and found that the respondent is guilty of misconduct under subsection (6), the high court exercised by virtue of Institute of Chartered Accountants of India Act, 1949 to remove the respondent from the membership for a period of 15 days as per the recommendation of the council. The principal still will be held responsible for the bills submitted by their staff also. There is need to think back for professional ethics. Professional ethics to be followed strictly in the audits carried on, to maintain the standards of Institute of Chartered Accountants of India.