CA found Guilty of Accepting audit assignment without obtaining any appointment letter

CA found Guilty of Accepting audit assignment without obtaining any appointment letter The Disciplinary Committee of the Institute of Chartered Accountants of India (ICAI) has found a Chartered Accountant Gaurav Sureshkumar Agarwal guilty of Submitting misleading Audit Report. CA found Guilty on the allegation that he in his Audit report failed to report that the office bearers of the society had not maintained the books of accounts and the statutory registers. In addition to this, it is also alleged that even though the office bearers of the society did not maintain any vouchers for the expenses carried out by the Society, still the accounts were audited by the Respondent and that too without· reporting the same in the Audit report and the Respondent accepted the audit assignment without obtaining any appointment letter. On the day of the final hearing on 17/08/2021, the Committee noted that the CA was present before it through Video Conferencing Mode. On being asked by the Committee whether the Respondent accepts the charges levelled against him, the Respondent pleaded not guilty and wish to defend the charges. Thereafter the Respondent made detailed submissions in his defense. After considering all papers available on record and after detailed deliberations and recording the submissions, the Committee decided to conclude the matter.

Findings

The Committee noted that the Respondent submitted that he had verified the vouchers and other related documents. With regard to charge of non- updating of certain registers, the Respondent submitted that he had approached the treasurer to update an the records and share with him at the time of the sighing of the report. But, at the last moment the treasurer was unable to come and the person who appeared on the behalf of treasurer assured him that registers were complete. So, on the bonafide belief, the Respondent did not check the registers and signed the financials. Accordingly, the Committee noted that gross negligence on part of Respondent is evident for this charge. Committee also noted that on a specific question to the Respondent that as to how he was right in issuing of audit report, the Respondent did not respond/ was unable to answer. Accordingly, the Committee considers the same as acceptance of guilt by the Respondent with respect to his lapses in conducting the audit. Looking into the admissions of the Respondent vis-a-vis gross negligence on his part, the Committee decided to hold him Guilty of this charge. As regards failure of the Respondent in respect of his appointment is concerned, the Committee noted that the Respondent accepted that while commencing the audit certain formalities were pending. The Committee looking into his admission decided to hold him Guilty with respect of this charge also.

Conclusion

In view of the above findings stated in above paras and the Committee, on considering the documents and submissions on record decided that the Respondent CA Gaurav Sureshkurmar Agarwal (M.No.144100), Dombivali is held Guilty of Professional Misconduct falling within the meaning of Item (7) of Part I and Item (1) of Part II of the Second Schedule to the Chartered Accountants Act, 1949. To Read Official Order Download PDF Given Below: