News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Professional Updates »
 Invitation for expression of interest from software development companies for providing software relevant to the Practitioners & CA Firms of ICAI by 31.05.2020
  Appeal to contribute in ICAI Covid 19 Relief Fund
  Invitation to participate in the activities of the Internal Audit Standards Board, ICAI
 ICAI Advisory on Accounting and Assurance related issues for F.Y – 2019-20
  Research Committee of ICAI invites Members in Academics, Teaching, Research, MDP to update their details in order to get associated in activities of Research Committee
 Survey for Seeking Preference for Learning Foreign Language Course
 Invitation to Members to Empanel as a Resource Person for Conducting Investor Awareness Programmes
  Extension of validity of Peer Review Certificate in the wake of COVID-19 spurt across the country.
 Restoration of Membership/COP of ICAI
 Appeal to contribute in ICAI Covid 19 Relief Fund
 IMPORTANT ANNOUNCEMENT - POSTPONEMENT OF CHARTERED ACCOUNTANT EXAMINATIONS, MAY 2020

Amend listing norms to wield stick against audit firms, says ICAI
January, 27th 2009

Faced with criticism that its disciplinary machinery is only focused on errant members and not on the firm that they represent, the auditing profession regulator Institute of Chartered Accountants of India (ICAI) has trained the gun on audit firms now.

The ICAI has written to the Securities and Exchange Board of India suggesting that the listing agreement be amended so as to require a listed entity to give an undertaking that it would not appoint any firm as auditors whose partners have been found guilty of professional misconduct and awarded punishment under the ICAIs disciplinary mechanism.

We feel this will be a good deterrent. It will send a strong signal. Audit firms will put in process steps to ensure that the partners strictly comply with auditing standards and not indulge in any fraudulent activities. If any partner is found guilty and punishment is awarded, then the entire firm will have to bear the brunt of it as it cannot audit any listed entity in India, Mr Ved Jain, ICAI President, told Business Line.

Even though it is not mandatory for the capital markets regulator to implement the suggestion, Mr Jain said that the ICAI would persuade SEBI to bring about these changes to the listing agreement.

Meanwhile, on the question of whether an audit firm would stand eligible for being appointed as statutory auditor if its tainted partners were to go in an appeal to the High Court against the ICAIs disciplinary action, legal experts contend that it would be eligible. A judgment is not operative if an appeal has been filed against it and stay has been granted. So, in such a situation, the audit firm would be eligible for appointment, sources said.

ICAI has also written letters to the RBI, the Comptroller and Auditor-General of India (CAG) and IRDA stating that audit firms whose partners have been found guilty for professional misconduct should not be eligible for statutory audit work in the sectors overseen by them.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting