Persistent Non-cooperation During NFRA Investigation Results in 10-Year Debarment of CA
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 5 August, 2023
Under Section 132(4)(b) of the Companies Act, the NFRA is authorized to request books of accounts from auditors under investigation. On such request, the auditors must serve the relevant documents within the stipulated time. Failure to communicate promptly or any delay will be regarded as a breach of NFRA regulations, and the auditor may be found culpable of professional misconduct.
In the recent order issued by NFRA, it is observed that despite sufficient time and opportunity given to the auditor, he did not submit the audit file and SQC 1 policy of the firm which forced NFRA to conclude that either the auditor had no such documents with him or is unwilling to cooperate with NFRA in the discharge of its statutory responsibility. Thereafter, the NFRA issued an order based on materials available on the record.
Persistent non-cooperation shown by the Chartered Accountant during the investigation process agitated the NFRA to take stringent action against Chartered Accountant.
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied