ICAI Professional Misconduct: CA Accepting Tax Audit Assignment Without Communicating to Previous Auditor Found Guilty

The Institute of Chartered Accountants of India (ICAI) in the matter of CA. lshan Gupta v/s CA. Pankaj Kumar found the Chartered Accountant guilty of professional misconduct.

1. The Board of Discipline vide Report dated 10th January, 2022 held that CA. Pankaj Kumar (M. No. 517004) is Guilty of Professional Misconduct falling within the meaning of Item (8) of Part I of First Schedule to the Chartered Accountants Act, 1949.

2.An action under Section 21A (3) of the Chartered Accountants Act, 1949 was contemplated against CA. Pankaj Kumar and communication dated 2nd February, 2022 was addressed to him thereby granting him an opportunity of being heard in person and/or to make written representation before the Board on 9th February, 2022.

3. CA. Pankaj Kumar appeared before the Board on 9th February, 2022 through video conferencing and made his oral representation thereat.

4. The Board has carefully gone through the facts of the case and also the oral representation of CA. Pankaj Kumar.

5. As per the Findings of the Board as contained in its report, CA. Pankaj Kumar accepted the appointment as tax auditor of M/s Vardhman Rice Mills (“Firm”) for the Financial Year 2017-18 without first communicating with the Complainant who was the previous auditor of the Firm. Further, CA. Pankaj Kumar admitted his mistake in his written submissions made vide his email dated 04/09/2019 at the Prima Facie Opinion stage and also verbally before the -Board during the proceedings held on 28th September, 2021. Thus, it has already been conclusively held that CA. Pankaj Kumar is Guilty of Professional Misconduct falling within the meaning of Item (8) of Part I of
the First Schedule to the Chartered Accountants Act, 1949.

6. Upon consideration of the facts of the case, the consequent misconduct of CA. Pankaj Kumar (M. No. 517004) and keeping in view his oral representation before it, the Board decided to Reprimand CA. Pankaj Kumar (M. No. 517004).

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