CA’s name removed from ICAI register for wrong certification

The Disciplinary Committee of Institute of Chartered Accountants of India(ICAI) has found CA Guilty of Professional Misconduct and removed CA’s name from ICAI register for wrong certification.

The Committee noted that the Respondent with regards to the charge against him submitted that he had already submitted his written submissions and he had not issued the alleged certificate. He further submitted that the letter head and address mentioned on the letter head were different and that address was changed. one year back. He further mentioned that the signature on the alleged certificate is entirely different when compared with the signature available with ICAI.

The Respondent also submitted that the letter he.ad is not the official letter head of his firm, the letter head used in the certificate is only a computer generated letter and not a printed letter and the alleged certificate was undated, and place was also not mentioned in that certificate.

On the specific question of the Committee as to why the Respondent had not filed any FIR against the client, the Respondent failed to provide reasonable justification for not filling the complaint/ FIR with the Police. He merely submitted that he was unaware of the same certificate and when he received this complaint letter from the Institute he only came to know about the said fact and he was not aware as to, against whom he should file the FIR and this is one of the reasons for the delay in filling of his reply.

The Committee noted that the Respondent at prima-facie stage and vide email dated 21st November 2017 had sought time for submission of the written statement and, despite the same, had not submitted his written statement at prima-facie stage. The Committee noted surprisingly, the Respondent is now claiming that he was not aware of the case and was not aware as to against whom he should file his FIR. The Committee also noted that the Respondent had not even provided the additional documents specifically called from him by the Director (Discipline). During the hearing also, the Respondent provided the answer, very casually, to the question put forth by the Committee to him.

The Committee noted that the alleged certificate was on the letter head of the Respondent along with his signature, membership number and seal of the firm. The Committee further noted that the signatures on the alleged certificate were also similar to his signature available with ICAI . records. Further, similar signatures were submitted by the Respondent in the declaration filed by him for attending the hearing through Video Conferencing Mode. Accordingly, the Committee opined that the defense of the Respondent, that he had not issued the alleged certificate, is an afterthought of the Respondent and hence cannot be relied upon.

The Committee also noted that as per the Audit Report for the year ended 31st March 2013, issued by one CA. Prasad M. Dixit, Ahmedabad, that no addition of capital had taken place during the year 2012-13 (Page C-9 of Prima-facie opinion), whereas the Respondent has certified that there was addition in capital during the year.

The Committee further noted that the Respondent was required to be more vigilant while performing his professional duties, because when a professional certifies something, he becomes liable or responsible for its factual accuracy. In this regard, it is noted that Point 2.2 of “Guidance Note on Audit Reports and Certificates for Special Purposes” provides as under:

” ……….. when a reporting auditor issues a certificate, he is responsible for the factual accuracy of what is stared therein.”

The Committee noted that the certificate issued by the Respondent was incorrect and the Respondent failed in applying due diligence before issuance of the certificate.

CONCLUSION

In view of the above findings, the Committee in its considered opinion hold the Respondent is GUILTY of Professional Misconduct falling within the meaning of Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949.

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