ICAI pitches for powers to act against audit firms

Sidhartha/ New Delhi /Tnn /July 31, 2017

The Institute of Chartered Accountants of India (ICAI) has defended its disciplinary record,
arguing that decision making has been speeded up and it was looking at ways to strengthen its
efforts - including pitching for powers to act against audit firms -to clamp down on errant
professionals. Prime Minister Narendra Modi had asked the institute to step up its efforts to clean
up the profession and aid the government in its fight against wrong doers, especially those with
illicit wealth.

Sources in the institute told TOI that it had submitted a road map to expedite cases to a panel
constituted by the ministry of corporate affairs. However, following the PM's statement on July
1, an internal group has been reconstituted to ensure if further steps were required. "We are
making an all-out effort to act against those who are not following the rules and laws and there is
no slip-up at our end. We are much more proactive in acting against wrong doers than other
professional bodies," said an ICAI office-bearer in what was probably a reference to the Medical
Council and the Bar Council.

Over the last three years, ICAI's disciplinary committee and the board of discipline has found
402 chartered accountants guilty. While ICAI's track record has faced criticism amid suggestions
that the process was slow due to the self-regulatory nature, sources said that there are
government nominees in the entire process and a case is closed only after it has been reviewed
after prima facie investigations. "There is enormous oversight and by and large cases are decided
unanimously," a source said.

Asked about the concerns expressed by government agencies over even their cases not been
decided expeditiously, the sources said that in several cases the agencies only passed on
information and did not lodge a complaint. As a result, these were treated as information. "In
several cases, the agencies do not participate once the officer-concerned is transferred. In
addition, they seek repeated adjournments, which delay the process," a source said.