The article, "Reforms in audit probes: A wish for the new year" (January 5), appears to lament the declining standards of ethical and professional conduct by chartered accountants and also talks of delays in the disciplinary proceedings conducted by the Institute of Chartered Accountants of India (ICAI). The article, seems to project the disciplinary mechanism of the institute in a manner belittling the profession.
Out of 129 cases pending inquiry on February 12, 2015, the disciplinary committee completed proceedings in 100; the remaining cases (except court matters) were either fixed and adjourned at the request of the parties involved or heard partly. Similar is the case with the Board of Discipline, wherein 17 cases were concluded out of 28 (except court matters).
These statistics reflect the ICAI's intent not to defer or delay pending inquiries and to deal with every case based on its merit. The ICAI has a strong disciplinary mechanism with a well-defined procedure based on principles of natural justice while ensuring that the guilty are never spared. The ICAI is committed to ensuring justice in disciplinary matters.
With respect to the inquiry against the auditors of eGTB, it may be reiterated that the ICAI does not intend to delay such proceedings fixed after prolonged litigation/adjournments sought by the respondents. This is evident from the expeditious disposal of similar cases in other years, wherein punishments were meted out to the delinquent(s).
With regard to the anecdote about a chartered accountant tearing up a notice of the income tax department, if the details of the person in question are disclosed to the ICAI, disciplinary action would be initiated against that person.
Regarding "Operation DDCA", the case being quasi-judicial, the proceedings have to adhere to prescribed norms to decide the conduct of the auditors concerned.
V Sagar secretary, ICAI
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