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2013 (7) TMI 525 - ALLAHABAD HIGH COURTQualified audit report - Disciplinary proceedings against Chartered Accountant (CA) - Discrepancies in the audited balance sheet and profits and loss accounts - Respondent pleaded guilty before disciplinary committee - Held that:- balance sheet and profits and loss accounts of the assessee were incorrect - Whether the mistake was bonafide or not is not very material - Even if the computer typist took the last year's closing stock figure and adjusted the cane payment dues account to tally the balance sheet, the respondent was required to compare the closing figure with the closing balance in the books of accounts and the trial balance thereof - no evidence that the respondent cared to obtain confirmation from third parties regarding the amount due to them, which would have demonstrated that the cane dues as mentioned in the balance sheet are incorrect - He simply signed the balance sheet, profits and loss account prepared by the computer operator without verifying the correctness and authenticity of the facts and figures appearing therein - He failed to exercise the professional skill which he possessed by acting in a totally perfunctory manner - Respondent acted in a grossly negligent manner and failed to obtain sufficient information to warrant the expression of opinion in the balance sheet and profits and loss accounts - Following decision of In Re: Shri ´M´, An Advocate of The Supreme Court of India [1956 (10) TMI 31 - SUPREME COURT] - Decided in favour of Council. Quantum of punishment - Held that:- No malafide intention has been found on part of the respondent in furnishing incorrect audit report and financial statements - Respondent is in profession for more than 20 years with no history of any such misconduct in the past - Interest of justice will be served if respondent is severely reprimanded for his misconduct - Decided in favour of Council.
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