ICAI Professional Misconduct: CA Found Guilty for Continuing Using Name of Ex-CA Employee for Bank Audit & CAG Empanelment

The Institute of Chartered Accountants of India (ICAI) in the matter of CA. Astha Jain v/s CA. Sheetal Jain found Guilty for Continuing Using Name of Ex-CA Employee for Bank Audit & CAG Empanelment.

1. The Board of Discipline vide Report dated 11th February, 2021 held that CA. Sheetal Jain (M.No.406565) is Guilty of other Misconduct falling within the meaning of Item (2) of Part-IV of the First Schedule to the Chartered Accountants Act, 1949 read with section 22 of the said Act.

2. An action under Section 21A (3) of the Chartered Accountants Act, 1949 was contemplated against CA. Sheetal Jain and communication dated 21st October, 2021 was addressed to him thereby granting him an opportunity of being heard in person and/or to make written representation before the Board on 28th October, 2021. CA. Sheetal Jain vide email dated 27th October, 2021 submitted his written representation on the Findings of the Board.

3. CA. Sheetal Jain appeared before the Board on 28th October, 2021 through video conferencing and made his oral representation thereat. Considering the same, the Board directed the office to find out how many times the Respondent logged in SSP portal to record the resignation of the paid assistant, CA. Astha Jain (M.No.541354) from his firm. Accordingly, the decision on the quantum of punishment to be awarded to the Respondent was reserved by the Board.

4. Thereafter the Board at its meeting held on 25th November, 2021 amongst other submissions and records in the case noted that neither any application was raised by the Respondent for removal of the Complainant as his paid assistant nor any request was submitted or saved by the Complainant in the system. The Board also noted that it had at its meeting held on 5th October 2021 wherein the Respondent was present, directed the office to seek information from the Professional Development Committee of the ICAI whether the Respondent has taken/continued to take credit in the Multipurpose Empanelment Form for Bank Audits and other assignments in respect of CA. Astha Jain (M. No. 541354) by showing her as a paid assistant in his firm. The Professional Development Committee of the ICAI informed that credit of 1 (One) Paid Chartered Accountant for CA. Astha Jain (MRN 541354) has been given to the said firm in the Bank Branch Auditors’ panel for the year 2017-2018, 2019-2020 and 2020-2021.The same was also indicated/marked as deleted by the concerned firm in the Multipurpose Empanelment Form for the year 2019-2020 and 2020-2021. Even if credit of CA. Astha Jain (MRN 541354) as paid CA was not considered for Bank Branch Auditors’ Panel for the respective years even then the firm would have been categorized in same category. Accordingly, the Board decided on the quantum of punishment to be awarded to CA. Sheetal Jain.

5. The Board also noted that CA. Sheetal Jain in his written representation received through email dated 27th October, 2021 inter-alia submitted as under:-

a. The Complainant wanted to gain experience from the Respondent Firm and joined the same. She was irregular at work and wanted only experience on paper. She joined some other firm without informing him. She informed about her new job to ICAI and not to him, that too after a long delay.

b. The Respondent was asked to pay late fees by ICAI, alleging late filing, for no fault on his part and that was what disturbed him. The same is the cause of delay.

c. The Respondent never used Complainant’s name to take any credit for empanelment as auditors. The facts are verifiable from ICAI records. The Respondent had informed ICAI that he would relieve her since the day ICAI would ask him. The Respondent had not misbehaved in any manner in this whole case.

6. The Board has carefully gone through the facts of the case and also the oral and written representation of CA. Sheetal Jain.

7. As per the Findings of the Board as contained in its report, no formal letter of appointment was issued by CA, Sheetal Jain to the Complainant for being appointed as the paid assistant with his firm and similarly, the Complainant also left the firm w.e.f. 1st November 2016 on verbal intimation. However, subsequently, the Complainant vide email dated 10th August 2017 followed by reminder email dated 12th August 2017 requested CA. Sheetal Jain to relieve her from his firm with effect from 1st November 2016 which was duly received by CA. Sheetal Jain and responded vide email dated 21st August, 2017. However, till date·, the Complainant had not been relieved by CA. Sheetal Jain from his firm. Further, CA. Sheetal Jain failed to provide any plausible justification for not – relieving the Complainant from his firm from the position of the Paid Assistant even after receipt of repeated reminders and correspondence from the Complainant and the Institute CA. Sheetal Jain unnecessarily complicated the issue of relieving the Complainant from his firm, being one of professional colleagues. Thus, it has already been held that CA. Sheetal Jain is Guilty of Other Misconduct falling within the meaning of Item (2) of Part IV of the First Schedule of the Chartered Accountants Act, 1949 read with Section 22 of the said Act. The Board, through further information received at the stage of award of punishment observed that neither any application was raised by the Respondent for removal of the Complainant as his paid assistant nor any request was submitted or saved by the Complainant in the Member/Firm records/SSP of ICAI. Further even if credit of CA. Astha Jain (MRN 541354) as paid CA was not considered for Bank Branch Auditors’ Panel for the respective years even then the Respondent firm would have been categorized in same category.

8. Upon consideration of the facts of the case, the consequent misconduct of CA. Sheetal Jain (M.No.406565) and keeping in view his oral and written representation before it, the Board decided to Reprimand CA. Sheetal Jain (M.No.406565).

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