NEW DELHI: The Institute of Chartered Accountants of India (ICAI) on Wednesday said a record number of punishments had been given by it so far during the current financial year, with disciplinary actions ordered against 241 CAs, including removal from membership for up to five years, as against 119 last year.
ICAI’ president Charanjot Singh Nanda said the institute will seek to maintain highest ethical standards and vowed to ensure a robust and fast disciplinary mechanism. Asked about steps against errant firms, Nanda lobbed the ball in the court of the ministry of corporate affairs, saying that govt is yet to notify the amended provisions under the law.
Unlike the National Financial Reporting Authority, which has been acting against firms whose engagement partners have been caught indulging in irregularities, ICAI can only act against its members till govt notifies the new provisions.
The new ICAI president also asserted that audit was the forte of CAs, a statement that was meant to counter demand from company secretaries and cost accountants seeking accountant status for their members under the new Income Tax Bill.
“Audit work can be done only by chartered accountants, the chartered accountants in practice… we do audit. Audit is a serious business which can be done only by people doing so,” he said, adding that this extended to tax audits.
He, however, said that the issue will be discussed in a committee comprising representatives from ICAI, The Institute of Company Secretaries of India (ICSI) and the Institute of Cost Accountants of India (ICMAI).
Nanda added that one of the issues on his agenda is to make Indian firms bigger and help the 4 lakh CAs become global players. “India is a factory of accountants… we want Indian (CA) firms to be global for which we will seek govt support.” He said the institute is setting up a committee on prioritising work-life balance, while saying, it was up to members to decide how they want to pace lives.