NFRA fines Chartered Accountants with Rs.1 Lakh, Banned from taking up audit work for 1 Year

NFRA fines Chartered Accountants with Rs.1 Lakh, Banned from taking up audit work for 1 Year The National Financial Reporting Authority (NFRA) has imposed a one-year ban from taking audit work of any company as well as fine of Rs.1 Lakh on a Chartered Accountant. The regulator took this action in response to Prabhu Steel Industries Limited's (PSIL) audit work for violating laws at the level of the profession. According to NFRA, several lapses have been found in the audit work of CA Gulshan Jagdish Jham as Statutory Auditor of PSIL for the financial year 2019-20. The Order will become Effective after 30 days from June 21. Since the new NFRA Chairman, Ajay Bhushan Pandey, took office in March of this year, this is the first instance when punishment has been meted out to a CA and a monetary penalty has been imposed, according to sources. It might be recalled that NFRA released a financial review quality review report (FRQRR) on PSIL in mid-February of this year.