Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Industry News

| More

ICAI committed to conclude the disciplinary process against those found involved in the PNB scam

Posted On: 2018-02-24 20:45:23

ICAI is an autonomous regulator of accounting profession created by Chartered Accountants Act, 1949. During its existence of 69 years, ICAI is contributing in public interest with sole mandate of independence, integrity and excellence.

As per framework of governance, standard setting and disciplinary mechanism prescribed in the Chartered Accountants Act, 1949, a strong public interest oversight mechanism is inherent in ICAI structure since 8 Central Council Members on the Central Council (Apex body) of ICAI are nominated by the Government of India. Similarly, each Disciplinary Committee has two Government nominees and each Board of Discipline has one Government nominee and the Chairman of Appellate Authority of Disciplinary mechanism is a retired Judge of High Court being nominated by Central Government. Moreover, all the Standing and Non-standing Committees of ICAI has Government nominees as the member. All the decisions of the disciplinary Committee and Board of Discipline are taken on consensus basis. Besides, there is self-regulated mechanism in the form of Peer Review Board, Financial Reporting Review Board and Quality Review Board which have nominations from the Government of India. Moreover, Chairman of the Quality Review Board is appointed by the Central Government.

In the matter of irregularities in PNB that has been reported in media on 14th February, 2018, the disciplinary directorate of ICAI suo moto has started investigation as per Chartered Accountants Act, 1949 and issued letters on 15th February, 2018 to PNB, SEBI, CBI and ED urging them to share details of reports / findings in respect of alleged frauds.

The ICAI has also set up a High Powered Group to study the issues in PNB bank matter and suggest remedial measures and improvements in the banking system. First meeting of the Group has already been held on 23rd February 2018, in Mumbai. The officers of PNB were called by ICAI to appear and produce copy of all related documents in the said frauds. GM Western Zone, PNB appeared and made his statement in Mumbai.

The Directorate of Discipline of ICAI has also issued show cause notice to all Central Statutory Auditors of PNB and the auditors of Gitanjali Gems Limited. As such, ICAI's commitment to be pro-active regulator of the Auditing and Accounting profession through investigation is to ensure accelerated conclusion of proceedings and take action against those members of CA profession who are involved in the fraud at PNB.

In the background of pro-active steps, ICAI supports every effort of strengthening the existing mechanism but the model of oversight mechanism on the pattern of overseas regulations like Sarbanes Oxley Act 2002 has been found to be ineffective in so far in back-drop of banking sector mortgage scams in USA 2008-2009.

Further, Parliamentary Standing Committee in its own wisdom and after multi stakeholder consultation, in its 37th Report has recommended, "Consistent with its position on strengthening the oversight of corporate audit, the Committee desires that the existing mechanism in this regard under the ICAI Act should be streamlined and strengthened without needlessly adding to regulatory levels. This may be undertaken in consultations with the Institute of Chartered Accountants of India (ICAI), which is the designated elected self regulatory body for professional audit in the country...."

Last year, the Central Government appointed High Level Committee (HLC) comprising of Government Nominee members of the Disciplinary Committee of all three sisters Institutes namely The Institute of Chartered Accountants of India (ICAI), The Institute of Company Secretaries in India (ICSI) and The Institute of Cost Accountants of India (ICoAI) to suggest amendments in the respective Act for strengthening the disciplinary and oversight mechanism of all three Institutes. The ICAI has already submitted its comments to the recommendation of HLC, which has also already drafted amendments to the Chartered Accountants Act, 1949; Company Secretaries Act 1980, and Cost Accountants Act 1959 in line with the HLC report. In fact even before formation of the HLC, ICAI has pro-actively constituted internal group to review the disciplinary mechanism and already submitted its suggestions to Government for suitable amendment in Chartered Accountants Act, 1949.

In view of all the pro-active steps taken by the ICAI, a robust regulator of accounting and auditing profession of India, ICAI's commitment to conclude the disciplinary process against those found involved in the PNB scam remains high.

Till the time disciplinary inquiry is concluded, and the role of all those who acted in fiduciary responsibility is established in the matter, it would not be prudent to draw any conclusion against the profession. As such, ICAI remains committed as proactive regulator to ensure accelerated inquiry and conclusion of the disciplinary proceedings in PNB matter and supports any improvement in the existing disciplinary mechanism in view of HLC recommendations for all three Sister Institutes.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

ShareChat raises $100mn in Series D Funding

ITC Infotech and 'Automation Anywhere' Pioneer Digital Workforce

'Start-Up Summit 2019' - 17thAnnual Edition of Start-Up Summit to be hosted by Franchise India

Draft National Logistics Policy Should Incentivize Express Industry: EICI

PayMe India Receives NBFC Certificate from RBI

Revival in monsoon rains to bring some cheer back to the economy - Acuité Ratings and Research

TO THE NEW Offers Employee Stock Options

Anand Piramal invests in Snapdeal

Housing sales down 11 pc in Q1; demand to rise on tax sops: PropTiger

Elearnmarkets & StockEdge to organize Free Seminar in New Delhi on 'Making money from Stock Markets'

Rivigo raises USD 65 Mn from Warburg Pincus and SAIF Partners

Satishwar Balakrishnan appointed CFO of Aegon Life Insurance

GoAir spreads wings with 7 new international routes

Columbia Asia Hospitals felicitated The Economic Times Best Healthcare Brands 2019

ICAI celebrates Platinum Jubilee & 70th Chartered Accountants Day

TO THE NEW Recognized Amongst 'India's Best Companies to Work For, 2019'

Elara Technologies ranked 34th among India's 'Great Place To Work' for 2019

GST report card on completion of its 2nd year

GoAir inducts 50th aircraft into the fleet

Hotstar scores its largest ever single day reach of 100 Mn

RED Indies - RED FM's initiative to promote Independent Music

GoAir records best 'On-Time-Performance', 9th time in a row

IFO, 2019 - An initiative to make young learners familiar with the art of managing money

Snapdeal announces End of Season Sale

ClearTax launches 'Quick GSTR-9' product for speedy GSTR-9 filing

ICRA reaffirms Apeejay Surrendra Park Hotels Group's Long-Term and Short-Term Ratings

New HFS report recognizes Cognizant for 'Simplifying Healthcare'

National Life Transforms Customer Experience Program with Cognizant

ETMONEY becomes India's first comprehensive financial services app to integrate UPI

India pharmaceuticals market expected to reach USD 73.5 billion by 2023

Engineers Alert: Zomato opens registrations for its 'Trial Week'

Wadhawan Global Capital sells stake in Avanse to Warburg Pincus

ICAI Postpones May, 2019 CA Examinations

MSE 'Financial Inclusion' Drive in Goa in a bid to Boost Participation from Tier II, Tier III Cities & Rural Areas

Vikram Solar commissions 200 MW solar project for APGENCO

Cognizant Names Brian Humphries as CEO, Succeeding Company Co-Founder Francisco D'souza

Harish Natarajan appointed as the new President and COO of Strand Life Sciences

ICAI Celebrates Platinum Jubilee Annual Function

ICAI signs MoU with Invest India to promote Foreign Investment

Tata AIA Life Insurance celebrates the Centennial Year of AIA

Twenty14 Holdings Marks Entry into Switzerland with new IntercityHotel at Zurich Airport

ICAI signs MoU with ICPA of Kenya

Sathguru Management Consultants advises Pravesha Industries to divest majority stake in Crest Cellulose to Roquette Freres, SA

Saurashtra Freight Pvt. Ltd. charts out growth strategy

Toffee Insurance announces India's First Cyclist Insurance

Whitecaps flags of their 6 month excellence program in cake making

Home Credit India offers attractive customer-focused schemes across Lenovo and Motorola smartphone range

MyLoanCare rolls out a free loan portfolio management system

Auto LPG sector grows impressively; clocks 14% growth in sales

'India Cold Chain Show 2018' showcases innovative cooling solutions in Mumbai







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019