- ICAI is actively investigating approximately 601 Chartered Accountants for allegations of professional misconduct
- Everything you need to know.
Findings of Misconduct
Approximately 601 Chartered Accountants (CAs) are under investigation for professional misconduct, as per the 75th Annual Report of the Institute of Chartered Accountants of India (ICAI).
This was first reported by TaxScan.
Over 40% of the ICAI’s investigations result in findings of misconduct or lapses by the CA or the CA firm involved.
Punishments Issued
Professional misconduct cases are handled by two key bodies at the ICAI:
- Board of Discipline
- Disciplinary Committee
Punishments:
- Board of Discipline issued punishments in 63 cases.
- Disciplinary Committee imposed penalties in 142 cases.
As of now, 368 cases of professional misconduct are still pending before the ICAI’s disciplinary bodies.
Penalties for Misconduct: The ICAI’s maximum penalties include a lifetime suspension from membership and a fine of ₹5 lakh against erring CAs.
Case Statistics
As per Financial Express,
- In FY23, the ICAI considered 500 cases of prima facie violations. However, hearings were concluded in only 152 cases.
- Since 2007, about 2,650 cases have been referred for inquiry with 40.7% resulting in punishment, totaling 1,080 CAs penalized.
Regulatory Changes
The CA Act, 1949 was amended in 2022 to enhance accountability among practitioners and ensure justice is delivered more promptly, though the related disciplinary provisions have yet to be notified.
ICAI’s Role
The ICAI performs statutory duties by formulating accounting standards while enforcing ethical values as outlined in its code of ethics. It has taken proactive measures against members found guilty of misconduct through a robust disciplinary mechanism.
Conclusion
The high rate of findings of misconduct, coupled with ongoing investigations and pending cases, highlights the importance of ethical conduct among Chartered Accountants in India.
Continuous efforts are needed to improve the efficiency of the disciplinary process.
