Below the email of Chairman of Hubli branch of SIRC of ICAI to The President of ICAI . Wake up - ICAI . Amendment to Karnataka Co-operative Act – Inclusion of ICWAI Members in Co-operative Audit in Karnataka. CA.K.RAGHU President The Institute of Chartered Accountants of India Indraprastha Marg NEW DELHI-110 002 Respected Sir, Sub: Amendment to Karnataka Co-operative Act – Inclusion of ICWAI Members in Co-operative Audit in Karnataka With reference to above we wish to bring to your kind consideration that Government of Karnataka has brought an amendment to the Co-operative Act. The amendment is before the honorable Governor of Karnataka for his assent. Section 63(20) of the Co-operative Act is one of the amendment which includes a Cost Accountant into the persons eligible to be appointed as a Statutory Auditor. The amendment proposed is against the rulings pronounced by the Apex Court in the case of T D Venkata Rao V Union of India (1999)237 ITR 315(SC), and other various honorable High Courts. The Apex Court in its judgement has clearly stated that Chartered Accountants by virtue of their training, with special aptitude, skill and expertise in the Audit are eligible to be appointed as an Auditor. These amendments will dilute the profession by bringing in persons other than chartered Accountants into the filed of Audit. It will also affect the quality of the audit being conducted. Further this will bring an unhealthy competition. In case the amendment is carried out in the State of Karnataka the same may be taken up other states also. In this regard we are forwarding the memorandum received from CA C.R. Dhavalagi, (Past Chairman of Hubli Branch of SIRC of ICAI and Immediate Past President of KSCAA Bangalore) memorandum signed by many members, to take up necessary action in this matter. We kindly request you to take up the matter at appropriate level in the better interest of our profession. With warm regards Yours faithfully HUBLI BRANCH OF SIRC OF ICAI CA.HITESH KUMAR MODI CHAIRMAN
Posted on: Sat, 13 Sep 2014 15:22:27 +0000
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