ICAI Recommendation Regarding Penal Punishment for Audit Firms for Misconduct
The Institute of Chartered Accountants of India (ICAI) has submitted the first part of its Report, after consideration by its Council, wherein the former has recommended to the Government for amendments in the Chartered Accountants Act, 1949, Rules and Regulations framed thereunder so that action can be taken against firms of chartered accountants themselves, in addition to individual chartered accountants, for misconduct.
Giving this information in written reply to a question in the Lok Sabha, the Minister for Corporate Affairs, Shri Salman Khurshid, said that some of the major recommendations among others in the ICAI Report are strengthening mechanism to monitor compliance with ICAI regulatory requirements, seeking empowerment to scrutinize financial statements of public interest entities, introduction of a system by Reserve Bank of India whereby direct external confirmations on specified items like bank balances/advances/ deposits can be given to the statutory auditors by the banks concerned.
Shri Khurshid informed the House that the first part of the Report submitted by ICAI is under consideration of the Government.
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