The ICAI Code of Ethics prohibits a chartered accountant from expressing their opinion on the business of an enterprise where he, his firm, or his relative holds a major interest.
Nidhi | Mar 9, 2026 |
CA Found Guilty by ICAI for Auditing Firm Where Wife Held Majority Stake
The Institute of Chartered Accountants of India (ICAI) has reprimanded a chartered accountant because he expressed his opinion on the financial statements of a company where his wife held a substantial interest.
A complaint was registered against CA Besur Hallappa Renukappa, alleging that he had expressed an opinion on the financial statements of Saishiva Hotels Inc., Bangalore, where his wife was a partner holding a profit share of 51% to 73%. The respondent was the tax auditor of Saishiva Hotels Inc.
The ICAI Code of Ethics prohibits a chartered accountant from expressing their opinion on the business of an enterprise where he, his firm, or his relative holds a major interest. Such relationships can affect the auditor’s independence.
During the hearing, the respondent accepted his mistake and stated that the act was unintentional. He also requested the committee to take a lenient view.
Accordingly, the ICAI held CA Besur Hallappa Renukappa GUILTY of Professional Misconduct falling within the meaning of item (4) of Part I of the Second Schedule to the Chartered Accountants Act, 1949. Additionally, the committee reprimanded him.
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