In the last financial year, ICAI conducted 366 sittings, nearly three times the number of 2022-23. Credit: Fauzi Muda/Shutterstock.

The Institute of Chartered Accountants of India (ICAI) has intensified its disciplinary actions against members found guilty of misconduct, addressing criticism over its track record, reported Times of India.  

The association has faced criticism for its disciplinary record, prompting the government to establish the National Financial Reporting Authority (NFRA) to oversee auditors and audit firms for listed and large companies. 

Since 2007, 2,652 chartered accountants have been found ‘prima facie guilty’ of misconduct.  

Recent proceedings have seen an increase in actions taken, with more than 200 hearings completed between April and August 2024. 

In October, it was found that more than 40% of investigations initiated by ICAI against chartered accountants (CAs) or their firms lead to disciplinary actions. 

Although the 2022 amendments to the CA Act were designed to improve accountability and ensure timely justice, the new disciplinary provisions have not yet been put into effect. 

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In the last financial year, ICAI conducted 366 sittings, nearly three times the number in 2022-23.  

This year’s punishments are reportedly the highest in three years, partly due to a Supreme Court order closing several cases.  

A source told the publication that: “Out of the 2,652 cases referred for enquiry, hearing has been concluded in 2,284 cases after giving due opportunity of being heard to the parties to the case by the Board of Discipline and disciplinary committee, as the case may be.” 

Of the concluded hearings, 1,080 chartered accountants were found guilty of professional or other misconduct. 

Among these, 486 cases were referred by the government, with 387 hearings completed and 165 members held guilty.  

In addition, ICAI signed a memorandum of understanding with the Department of Skill Education, Central Board of Secondary Education in November 2024, to promote commerce-based skill courses in the banking, financial services, and insurance sectors.