ICAI Penalizes CA for Accepting Audit Without Notifying Previous Auditor: The ICAI has penalized CA Dinesh Kumar Ahuja ₹25,000 for professional misconduct. He accepted statutory audit assignments for Ridhima Overseas Pvt. Ltd. for FY 2017-18 and 2018-19 without prior communication with the previous auditor, violating the Chartered Accountants Act, 1949. Ahuja was also accused of backdating audit reports, causing filing delays. While found guilty of failing to communicate, other allegations lacked evidence.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA (Set up by an Act of Parliament) [PR/197/2021/D0/274/ 2021/B0D/744/2024]
ORDER UNDER SECTION 21A (3) OF THE CHARTERED ACCOUNTANTS ACT, 1949 READ WITH RULE 15 (1) OF THE CHARTERED ACCOUNTANTS (PROCEDURE OF INVESTIGATIONS OF PROFESSIONAL AND OTHER MISCONDUCT AND CONDUCT OF CASES) RULES, 2007
IN THE MATTER OF: CA. Jai Kumar Mansharamani (M. No. 073450), Partner of M/s Khandelwal Khare & Associates, Chartered Accountants 19, ODA SFS Flats, Opposite Ansal Plaza, Niti Bagh, New Delhi………………………………………………………………………………………………………………………. Complainant Versus
Professional Address
5328/67, First Floor, HS Road, Karol Bagh, New Delhi
Residential Address
B4/17 Rajouri Garden, New Delhi
[PR/197/2021/DD/274/2021/BOD/744/2024] MEMBERS PRESENT (THROUGH VIDEO CONFERENCE): CA. Rajendra Kumar P, Presiding Officer Ms. Dolly Chakrabarty (IAAS, retd.), Government Nominee Date of Hearing and passing Order: 10th January 2025 1. The Board of Discipline vide its findings dated 14th December 2024 was of the view that Dinesh Kumar Ahuja (M. No. 080757) is GUILTY of Professional Misconduct falling within the meaning of Item (8) of Part I of the First Schedule to the Chartered Accountants Act, 1949. 2. An action under Section 21A (3) of the Chartered Accountants Act, 1949 was contemplated against CA. Dinesh Kumar Ahuja (M. No. 080757) and communication dated 2nd January 2025 was addressed to him thereby granting him an opportunity of being heard on 10t” January 2025 which was exercised by him by being present through video conferencing. He confirmed receipt of the findings of the Board. 3. Thus, upon consideration of the facts of the case, the consequent misconduct of CA. Dinesh Kumar Ahuja (M. No. 080757) and keeping in view of his representation before it, the Board decided to impose a Fine of Rs.25,000/- (Rs. Twenty-Five Thousand only) upon Dinesh Kumar Ahuja (M. No. 080757). Sd/- CA. Rajendra Kumar P (Presiding Officer) Sd/- Ms. Dolly Chakrabarty (IAAS, retd.) (Government Nominee)
In the second case, another CA was penalized with a fine of Rs. 1 lakh for accepting the statutory audit of a company without communicating with the previous auditor. The complainant had outstanding audit fees from the company, which were not settled before the respondent CA took over the audit assignment for multiple financial years. The BoD found the respondent CA guilty of professional misconduct under the same provision of the Act. Both CAs were given opportunities to present their cases during hearings held via video conferencing. The BoD emphasized the statutory requirement for incoming auditors to communicate in writing with outgoing auditors before accepting audit assignments. The failure to do so undermines professional ethics and accountability within the auditing profession.