12 August 2016

ICAI Cannot restrict number of audits

Case Name : Shaji Poulose,Chartered Accountant Vs. ICAI (Kerala High Court)

Appeal Number : WP(C).No.25662/2016(G)

Date of Judgement/Order : 03/08/2016

Hon’ble High Court of Kerala has stayed the disciplinary proceedings initiated by ICAI against CA Shaji Poulose for exceeding the limit on number of tax audits.

ICAI Cannot restrict number of audits as it has no power to issue such direction. Only statute can impose restrictions.

2 comments:

  1. Putting restrictions on number of Tax Audits by ICAI and treating the Member as Guilty is erroneous, unjustified, and unsustainable for the reasons stated as under:

    1) It will restrict the freedom of practicing CA and as such it is against Article 14 r.w. Article 19 (1) (g) of the Constitution of India.

    2)ICAI Cannot restrict number of audits as it has no power to issue such direction. Only statute can impose restrictions.

    3) There is no proper system evolved in as much as to say the member or client has no option or possibility in searching a CA who has not crossed the limits of audits and interested. For instance in the Bus and Railway ticket booking seats, births full or vacant tracing is possible but no such procedures evolved by ICAI.

    4) The senior most CA having wide experience and large establishment and a just passed and practicing newly CA treating at par will be unjustified.

    5) Restricting the audits can be recommendable and can not be made mandatory. Because it will also restrict the freedom of the business man or client to chose his preferred auditor.

    ReplyDelete
  2. Putting restrictions on number of Tax Audits by ICAI and treating the Member as Guilty is erroneous, unjustified, and unsustainable for the reasons stated as under:

    1) It will restrict the freedom of practicing CA and as such it is against Article 14 r.w. Article 19 (1) (g) of the Constitution of India.

    2)ICAI Cannot restrict number of audits as it has no power to issue such direction. Only statute can impose restrictions.

    3) There is no proper system evolved in as much as to say the member or client has no option or possibility in searching a CA who has not crossed the limits of audits and interested. For instance in the Bus and Railway ticket booking seats, births full or vacant tracing is possible but no such procedures evolved by ICAI.

    4) The senior most CA having wide experience and large establishment and a just passed and practicing newly CA treating at par will be unjustified.

    5) Restricting the audits can be recommendable and can not be made mandatory. Because it will also restrict the freedom of the business man or client to chose his preferred auditor.

    By Dattatreya.R.Meharwade.FCA
    HUBBALLI
    mail : dattameharwade@gmail.com

    ReplyDelete

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