Continuing its efforts to strengthen the disciplinary mechanism, chartered accountants' apex body ICAI has suggested legal provisions for "time-bound" completion of cases through an amendment to the Chartered Accountants Act.
The Institute of Chartered Accountants of India (ICAI), which has over three lakh members, has cleared more than 400 cases under disciplinary mechanism in one year, its President Atul Kumar Gupta told reporters on Thursday.
According to him, the institute would be implementing an e-hearing (electronic hearing) mechanism and also work towards ensuring that no cases would be pending for more than eight months from the date of filing a complaint.
In one year, more than 400 cases were cleared and 60-70 per cent members were held guilty. Such actions would act as a deterrent for members against violations, he noted.
Emphasising that the institute has a strong regulatory mechanism, Gupta also said the institute was looking at changes in the Chartered Accountants Act.
He was responding to various queries, including about perception in certain quarters that the institute has a soft approach in disciplinary actions against members.
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"We are even looking at an enabling provision in the CA Act... We are proposing that there should be time-bound completion of cases... We are looking forward (to it). Then there will be consistency...," he said.
ICAI has been set up under the Chartered Accountants Act, 1949, that regulates the profession of chartered accountancy in the country. It comes under the Corporate Affairs Ministry.
Further, Gupta said there would be changes in peer review mechanism this year and a revised Code of Ethics for the members would also come into effect from July 1, 2020.
About the ministry's consultation paper regarding auditors, Gupta said ICAI is "very happy" with it and that a number of proposals were initiated by the institute in the past.
Stressing that there are "no apprehensions," he also said the institute has set up a high-level group that would submit its report by February 28 to the ministry on the paper.
On February 7, the ministry came out with a consultation paper proposing significant amendments to existing regulations to enhance independence and accountability of auditors.