The newly constituted financial report review panel (FRRP) of the Institute of Chartered Accountants of India (ICAI) will suo motu look into the published accounts of all entities including banks and financial institutions.
If any irregularity is found, the findings of the panel will form the basis of initiating action under the disciplinary mechanism which ICAI proposes to put in place soon, an ICAI release said.
ICAI is seeking powers of a civil court to give teeth to the panel. This will enable the panel to call for any document from the entities probed. In order to do so, ICAI is proposing suitable amendments in the Chartered Accounts Act, 1949. The panel will however start working even before the amendments are made. The last time the act was amended was in 1959.
A working group of the institute has proposed a total revamp of the existing disciplinary mechanism for ensuring speedy disposal of disciplinary cases. This mechanism includes four stages
