BJP MP Suresh Prabhu raises specific points against CA Amendment Bill

The Institute of Chartered Accountants (ICAI), according to BJP MP Suresh Prabhu of Andhra Pradesh, is not opposing all aspects of the CA Amendment Bill but has raised some concerns about specific provisions.

Mr. Suresh Prabhu is a Chartered Accountant by training and he used to also practice as a Chartered Accountant before coming into public life.

He clarified that the ICAI is not fully opposing the Bill. There is acceptance for provisions including determining the fee for the entry of the name in the register, pause to discipline chartered Accountant Firm forms that are section 20, 21 & 21 b, increasing the quantum of punishment, maintenance of firms register, finance of the council, increases the penalty for falsely claiming to be a member, etc.

The main problem is when a Non-Chartered Accountant can take decisions related to Disciplinary Proceedings.

He wondered if a non-medical expert could decide on a medical procedure issue, claiming that having a non-chartered accountant sit in judgment could have unexpected repercussions.

He further added, “how can you decide the fairness of a financial statement which is so technical in nature when a Non-Chartered Accountant can sit on judgment and decide about it”.

I personally feel there’s a need for a serious rethink about the composition of the constitutional board of discipline in which no harm in having an outsider this is absolutely a part of fairness but the numbers should not be such that you have non-chartered accountants outnumbering Chartered Accountants.