FW: Comments by CAG in report No.32 of 2014 on performance audit on appreciation of third party (Chartered Accountant) From: CA. DEEP K. JAIN [mailto:deepjainca@gmail] Sent: 25 December 2014 PM 04:59 To: [email protected] Cc: rajkumarfca@gmail; rajkumarsadukia@gmail; jaychhaira@yahoo; pchhajed@yahoo; [email protected]; [email protected]; nihar.jambusaria@gmail; syjoshi@cvk-ca; casanjeevmaheshwari@gmail; [email protected]; [email protected]; [email protected]; [email protected]; devarajareddy@yahoo; victorgrace321@gmail; Cakraghu@kraghu; [email protected]; ssca@vsnl; [email protected]; padhuka@shrigurukripa; [email protected]; shyamjpr@gmail; [email protected]; vijaymgarg@gmail; vijaymgarg@yahoo; anujgoel28@sify; [email protected]; kushwah@rediffmail; agarwal.s.ca@gmail; [email protected]; [email protected]; schaudhary@bsraffiliates; casanjivkchaudhary@gmail; schaudhary@kpmg; csnanda@gmail; naveen@dassgupta; subodhka@gmail; subodhka@yahoo; [email protected]; babhijit@deloitte; banabhijit@hotmail; ca.sumantraguha@gmail; [email protected]; bhaskarchatterjee54@gmail; sbirla@birlas; sunil@srei; sls@piind; [email protected]; [email protected]; [email protected] Subject: Comments by CAG in report No.32 of 2014 on performance audit on appreciation of third party (Chartered Accountant) Dated: 25th December,2014 The President, ICAI, New Delhi Re: Comments by CAG in report No.32 of 2014 on performance audit on appreciation of third party (Chartered Accountant) Sir, Greetings of the season and Merry Christmas! You might be well aware how CAG has commented about the Chartered Accountants in their report mentioned above. CAG is like big brother for us and its comments, needs to be viewed and acted upon, seriously. For merely the fault of handful members, entire CA profession should not be allowed to suffer. To remind you, a year back a mail dated 16/12/2013 was written to the then DTC Chairman and now the VP of ICAI, with a copy to your office; concerning: 1. Whether CBDT has been requested to send the data, to take stock of the number of audit reports signed by each practicising chartered accountant, for the FY 2012-13? 2. During the tenure of last DTC, stunning data was received by ICAI from CBDT. What Disciplinary action has been recommended /initiated by the DTC, against those members who exceeded their limit of number of audits? Reply given by Secretary on 27/12/2013: a) Audits under section 44AD and 44AF of the Income-tax Act, 1961 are not taken into consideration for the purpose of reckoning the specified limit of tax audits. Since the same are not specifically captured in the present ITR forms, ICAI is in dialogue with the appropriate authority with regard to ITR forms to be notified for the Assessment year 2014-15. In other words, a holistic view is being taken in matter. b) The data received by ICAI earlier have been analyzed by the office. The matter is under consideration of the Institute. Number of Tax Audits or Company audits, which a member could do was probably fixed keeping in mind two things (a) To ensure Quality of the Audits (b) Fair distribution of work among the members , but without developing any mechanism, over the years, by the ICAI( the Regulator) failed to check whether the members have followed this limit, still do you think there is any sanctity in fixing such limits. In my humble view, please do not make such regulations, compliance of which cannot be ensured later on. Even the formal complaint(s) filed by the Kharagpur based Chartered Accountant in December 2013, against two members, for doing excessive audits, are still pending for disposal, even after expiry of one year. This issue was discussed by the undersigned with you and VP during your visit to our Faridabad Branch in June14 and request was made to speed up the matter for the sake of justice, since justice delayed is justice denied. Already the number of Company audit limit is fixed now by the Companies Act, 2013 and in its report CAG has strongly recommended to the Government for such number to be fixed in respect of the Tax Audit Reports. This act of doing excessive audits not only deteriorates the quality of audit, but also snatches bread and butter of another member. Many of our younger members are struggling for professional opportunities is a hard fact, today. Sir, do not you think , a lot is expected from the ICAI ,as the regulator of accounting profession for taking strict disciplinary actions in the time bound manner. Time has come to take stern actions against the guilty, by rising above the political considerations. Nomination of ICAI for Swachh Bharat campaign shows the faith of the PM of the country in the CA profession and we hope our Council will take steps for Swacch ICAI by initiating suo-motto enquiry after the CAG Report, on individual basis, and shall take strict disciplinary action against the erring members, to uphold the brand value of the CA profession. Thanks & Regards CC: all CC members CA. Deep Jain Two of the past presidents of the ICAI are in favour of suo-motto enquiry and if found guilty proper disciplinary action against the defaulted members. Sir, some where there is also the need to change the disciplinary mechanism, which takes too much time
Posted on: Thu, 25 Dec 2014 11:32:43 +0000
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