Key Highlights of proposed CA, CS, and CMA Amendment Act

Key Highlights of proposed CA, CS, and CMA Amendment Act Chartered Accountants, the Cost and Works Accountants, and the Company Secretaries (Amendment) Act, 2021 was tabled today in the Lok Sabha. The norms of the Disciplinary Mechanism for Chartered Accountants (CA), Cost and Works Accountants (CMA), and Company Secretary (CS) have been proposed to be tightened in the Bill. Some of the major changes in the Bill have been discussed in this article: 1. Any firm that is dissatisfied with the decision to refuse registration may petition the Council for a review within one month of the date of such refusal.

2. Council to Establish Disciplinary Directorate

The Council shall, by notification, establish a Disciplinary Directorate consisting of a Director (Discipline), at least two Joint Directors (Discipline) not below the rank of Deputy Secretary of the Institute, and such other employees appointed under section 16, for conducting investigations either on their own initiative or in response to information or a complaint, in such form and for such fees as may be specified. 3. Penalty for falsely claiming to be a CA , using designation as a CA by nonmember or a CA not holding COP practices as such increased from Rs, 1000 to Rs 1,00,000 for 1st-time conviction.

4. Elected member to hold office for not more than 2 Terms

A member of the Council, elected or nominated shall be eligible for re-election or, as the case may be, re-nomination: Provided that no member shall hold the office for more than two consecutive terms. Earlier this timeline was 3 years. The Term of Central council of ICAI changed from 3 years to 4 years. 5. Clause 62 of the bill makes a consequential change to include audit corporations in the scope of disciplinary action, defines members and companies for the purpose of disciplinary action, and provides scope for opposition. The purpose is to revise. Provides members or companies registered with the institute under another law. 6. C&AG to audit the accounts of the Institute and no council member will be involved in the audit.