New Delhi, The Institute of Chartered Accountants of India (ICAI) has passed an order against three associates and a retired partner of auditing major EY for "professional misconduct".
Further, ICAI has issued an order against S V Ghatalia & Associates, LLP and its partner for professional misconduct.
The unit is not operational yet. The Disciplinary Committee of ICAI has directed the companies and the individual partners concerned to immediately discontinue the existing arrangement with the multinational entities as it is circumventing the provisions of the Chartered Accountants Act, 1949.
The April 25 order is against S R Batliboi & Associates, LLP; SRBC & Company LLP; S R Batliboi & Co LLP and retired partner Raj Kumar Agarwal.
“We are disappointed to receive orders against our former retired partners in the case of operations of Indian audit firms that have networks with global companies."We as Indian audit firms always respect the rules and applicable laws. We are reviewing the order and will take necessary action, including all remedies available under law," SRBC & Co LLP said in a statement on Sunday.
The disciplinary committee has ruled that Raj Kumar Aggarwal's name has been removed from the register of members of the institute for three years in all the cases, and has also imposed a fine of Rs 5 lakh on him for each case. order.
In a separate but similarly worded order, ICAI has directed to remove the name of Tridibs Basu from the register in the case of S Ghatalia & Associates, LLP for three years.A fine of Rs 5 lakh has also been imposed on Basu, who was a partner in the entity at that time.
According to the Committee, joining an international entity and agreeing to have material provided for referral work and paying fees for such referrals is professional misconduct.
“The Committee holds that the visiting card contains information that reflects a virtual address belonging to Ernst & Young (the international entity), another email ID used by the respondent firm due to its close association with the international entity Shows relationship and or association.
According to the order issued in the case of SV Ghatalia & Were." Associates, LLP.Further, the order states that the practice adopted by the respondent firm to influence the potential clients/public at large to obtain the benefits of affiliation with EYG was a professional misconduct under the Chartered Accountants Act 1949.
Further, ICAI has issued an order against S V Ghatalia & Associates, LLP and its partner for professional misconduct.
The unit is not operational yet. The Disciplinary Committee of ICAI has directed the companies and the individual partners concerned to immediately discontinue the existing arrangement with the multinational entities as it is circumventing the provisions of the Chartered Accountants Act, 1949.
The April 25 order is against S R Batliboi & Associates, LLP; SRBC & Company LLP; S R Batliboi & Co LLP and retired partner Raj Kumar Agarwal.
“We are disappointed to receive orders against our former retired partners in the case of operations of Indian audit firms that have networks with global companies."We as Indian audit firms always respect the rules and applicable laws. We are reviewing the order and will take necessary action, including all remedies available under law," SRBC & Co LLP said in a statement on Sunday.
The disciplinary committee has ruled that Raj Kumar Aggarwal's name has been removed from the register of members of the institute for three years in all the cases, and has also imposed a fine of Rs 5 lakh on him for each case. order.
In a separate but similarly worded order, ICAI has directed to remove the name of Tridibs Basu from the register in the case of S Ghatalia & Associates, LLP for three years.A fine of Rs 5 lakh has also been imposed on Basu, who was a partner in the entity at that time.
According to the Committee, joining an international entity and agreeing to have material provided for referral work and paying fees for such referrals is professional misconduct.
“The Committee holds that the visiting card contains information that reflects a virtual address belonging to Ernst & Young (the international entity), another email ID used by the respondent firm due to its close association with the international entity Shows relationship and or association.
According to the order issued in the case of SV Ghatalia & Were." Associates, LLP.Further, the order states that the practice adopted by the respondent firm to influence the potential clients/public at large to obtain the benefits of affiliation with EYG was a professional misconduct under the Chartered Accountants Act 1949.
